Opinion of the Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council adopting an Action Programme for customs in the Community (Customs 2007)" (COM(2002) 26 final — 2002/0029 (COD))
Date: 2002-07-17
Institutions: European Economic and Social Committee
Subjects: EU customs procedure, action programme, common tariff policy, customs, customs cooperation, customs inspection, customs union, service

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Official Journal of the European Communities

7.10.2002

Opinion of the Economic and Social Committee on the ‘Proposal for a Decision of the European
Parliament and of the Council adopting an Action Programme for customs in the Community
(Customs 2007)’

(COM(2002) 26 final — 2002/0029 (COD))

(2002/C 241/02)

On 21 March 2002, the Council decided to consult the Economic and Social Committee, under Article
262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 26 June 2002. The rapporteur was
Mr Simpson.

At its 392nd Plenary Session (meeting of 17 July 2002), the Economic and Social Committee adopted the
following opinion unanimously.

EXECUTIVE SUMMARY

The need for Community-wide coordinated policies,
(f)
standards, common communications technologies, enforce-
ment and training for customs services is acknowledged.

The European Economic and Social Committee (EESC)
(a)
welcomes this initiative by the Commission to extend and
improve the work of the customs services under Customs
2007. The objectives are unexceptional and the methods
proposed are logical in the fulfilment of these objectives.

The EESC is, however, aware of

(b)
the many critical
problems still to be solved in securing more effective and
efficient customs services, reducing the levels of unrecorded
trade, and securing the degree of cooperation needed from,
and between, Member States.

(c)
A particular focus and concern of the EESC is that this
Programme should be used as an opportunity to advance and
enhance the customs regimes in the Applicant countries. It is
important for them, individually, and the Community in total,
that customs actions should be coordinated across the whole
area of the Enlarged Community.

The range of the proposed activities is comprehensive

(d)
and necessary.

(e)
Logically Customs 2007 focuses on coordinated and
effective customs policies, minimising the risks of inadequate
enforcement and maximising the competence and deployment
of staff. With these priorities the Community, Member States
and legitimate businesses will benefit from the reduction of
fraud and evasion. However, the key objectives of enhanced
customs policies are to improve the competitive environment
for business and foster employment, and support legitimate
commercial and trading activity.

Since this is a five-year programme there must be a
(g)
means of monitoring progress in the early stages and taking
corrective action if necessary.

(h)
A comprehensive evaluation should be conducted in
collaboration with the Member States and should be based on
objective criteria and indicators defined before the Programme
commences. The Committee hopes that the Commission can
relate the proposed actions to performance measures based on
the projected outcomes from the improved methods of
administering the customs regime.

(i)
The Committee welcomes the willingness of the Com-
mission to prepare a series of carefully selected impact
indicators to confirm that the objectives of the programme are
achieved.

1.

Introduction

1.1.
The Commission has published a Communication to
the European Parliament and the Council proposing that it
would be desirable to establish a new action programme for
customs in the Community for a further five years from
2002 to 2007.

This proposal would result

in the extension and
1.2.
expansion of the current programme, Customs 2002 (1), which
is itself a two year extension of
the earlier programme,
Customs 2000 (2), which was initiated in 1996.

(1) OJ L 13 of 19.1.2000.
(2) OJ L 33 of 4.2.1997.

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1.3.
The recent Customs 2000 programme was reviewed,
ex post, in an earlier Communication from the Commission (1).

1.4. More recently,
the Commission has published an
interim report, ex ante, on the implementation of the Customs
2002 programme (2).

1.5.
The theme of these reviews of the operations and
results of the past and current Customs programmes is that
they have been valuable both in the re-enforcement of
Community policies and in the improvement of the efficiency
and effectiveness of
the
Community.

the customs services throughout

1.6.
In March 1999, the European Economic and Social
Committee adopted an Opinion (3) on the interim report of
the action programme under the Customs 2000 proposals (4).
The Committee broadly supported the principles and the
operational schemes envisaged.

2. The Customs 2002 programme and the proposed

Customs 2007 programme

— adding to these platforms the New Computerised Transit
System (NCTS) and the Data Dissemination System (DDS)
that gives access to information on Community tariffs
(TARIC) and quotas. These databases are now receiving
2,5 mio. consultations per month;

— improved application of Community-wide customs stan-

dards;

— better cooperation to tackle the importation of counterfeit

goods;

— standardisation of various activities in support of customs
services, such as laboratories, product safety, chemical
precursors and the use of X-ray scanners;

— external activities in support of the applicant countries;

— exchange of officials and closer cooperation between
customs authorities, as in the RALFH projects for the five
main seaports
Le Havre,
Felixstowe, Hamburg) and the use of container scanners.

(Rotterdam, Antwerp,

Customs 2002

Customs 2007

The current customs programme, Customs 2002,
2.1.
combines a number of actions to enhance the efficiency of the
customs services throughout the Community.

2.2.

Amongst the key features are:

— the establishment of a Customs Policy Group and a
Customs 2002 Committee which serve to bring together
Commission officials and officials from Member States to
define common approaches to problems and adopt
measures to implement the programme;

— improved risk management assessment methods and

measures to help to fight fraud;

— approved programme investment in maintaining and
enhancing existing IT systems and the development of
new IT systems to meet changing customs requirements;

— the use of the enhanced IT capacity to support new
computer platforms such as the Common Communi-
cations Network/Customs System Interface (CCN/CSI);

The proposed Customs 2007 programme will continue
2.3.
the work of the existing programmes and in addition it is
proposed that some aspects should be enhanced and some
new features added.

2.4.
In setting the framework for the new programme, the
Commission has articulated the main policy objectives that
justify the proposals. These are:

— to foster employment by contributing towards a competi-
tive business environment with reduced compliance
costs;

— to 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 one single administration;

— to improve the protection offered by customs to the
interests of the Com-

consumer and to the financial
munity (5).

( 1) COM(2001) 51 final of 8.2.2001.
( 2) SEC(2001) 1329 of 31.7.2001.
( 3) OJ C 138 of 18.5.1999.
( 4) OJ C 396 of 19.12.1998.

(5) COM(2002) 26 final, Explanatory Memorandum, para. 3.

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2.5.
The key objective is to ensure that Community law
relating to customs policies is applied in a consistent and
‘Customs
professional manner in all Community countries.
activity is to match the needs of the Community’s single
market’ [Art. 3.1(a), as amended by the Council]. Not only
must customs activity match the needs but it is important that
it is applied with an enhanced degree of consistency by each
of the Member States.

3. General comments

3.1.
The European Economic and Social Committee (EESC)
welcomes this initiative by the Commission to extend and
improve the work of the customs services under Customs
2007. The objectives are unexceptional and the methods
proposed are logical in the fulfilment of these objectives.

The Customs 2007 programme would add new
2.6.
emphasis to improved computerisation, reform of
transit
controls, better risk analysis and controls where illegal activities
are most likely, a better foundation for tackling fraud and a
clearer agreed set of standards for the applicant countries in
the pre-accession phases.

3.1.1.
The EESC is, however, aware of the many critical
problems still to be solved in securing more effective and
efficient customs services, reducing the levels of unrecorded
trade, and securing the degree of cooperation needed from,
and between, Member States.

the revenue as the own resources of

2.7. Whilst
the primary objectives are the enhanced
efficiency of the customs services of Member States, a second-
ary consequence of the improvements would also be the
the
protection of
Community and this is acknowledged in Art. 3.1(d), as
amended by the Council. This should also contribute to
achieving higher standards in the administration and enforce-
ment of customs requirements for goods entering the Com-
munity.

Critically, the programme envisages a series of acceler-
2.8.
ated moves towards e-customs with all that that implies for
efficiency and moves towards paperless systems.

2.9.
In addition, practical support and training for relevant
staff on all aspects of Community customs provisions would
be a feature of the programme.

These measures should have the effect, inter alia, of
2.10.
reducing customs compliance costs that, in turn, will help to
ensure that customs costs do not become disproportionate to
the overall benefits. A further benefit is that these measures
should ensure that data input requirements, especially for
customs declarations, should be further standardised.

2.11.
The overall Budget cost is estimated to be EUR 133
mio. over the five years. Of this EUR 18,8 mio. is earmarked
for Joint Actions, with a special addition of benchmarking
actions. A further EUR 79 mio. relates to IT investments and
improvements. To this must be added EUR 22,7 mio. to assist
the applicant countries to invest in interconnecting systems.
Other actions add the remaining EUR 12,5 mio.

For the successful development of the internal market,
3.2.
the Governments and businesses in the Community need to
be assured that the administration of customs services is of a
high standard. Each Member State is reliant on the efforts of
the others to enforce and monitor the customs requirements
at the external frontiers and in the supervision of internal
trade.

3.3.
Successful customs services will bring uniform, consist-
ent and high standards across the Community. The achieve-
ment of this goal calls for Community actions of the kind
envisaged in Customs 2007.

3.4.
Enhanced customs services need to be developed
having regard to the contrasting pressures of avoiding an
excessive bureaucracy yet ensuring effective enforcement pro-
cedures.

3.5.
Logically, therefore, Customs 2007 focuses on coordi-
nated and effective customs policies, minimising the risks of
inadequate enforcement and maximising the competence and
deployment of staff. With these priorities the Community,
Member States and legitimate businesses will benefit from the
reduction of fraud and evasion.

3.6.
The need for Community-wide coordinated policies,
standards, common communications technologies, enforce-
ment and training for customs services is acknowledged.
However, because customs services are integrated in each
Member State as part of wider requirements of national
administration (including for example some responsibilities
for VAT, excise duties and prevention of traffic in some drugs)
customs services will continue to be part of
the public
administration responsible to the Member States. The role of
the Community at present is to ensure the appropriate levels
of effective cooperation.

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3.6.1.
The Committee recommends that the Commission
should play a more pro-active role in monitoring standards of
control in Member States. This could be achieved, in part, by
the appointment of a system of community-wide customs
inspectors. This recommendation would be particularly rel-
evant to helping applicant countries to adopt the necessary
standards of control and vigilance at the (new) extended
frontiers of the Community.

3.6.2.
The example of good practice illustrated by the
RALPH project (see para. 2.2) should be extended by the
introduction of a policy of grouping locations with common
control problems, or similar trade patterns, to improve control
and intelligence activity (e.g. ports in the Mediterranean). This
should be linked to the exchange of officials in customs
administrations (see para. 4.10).

This remit obviously extends with particular emphasis
3.7.
to the impact of Customs 2007 on the Member States
negotiating to become part of the Community.

3.8.
The Committee welcomes the moves by the Com-
mission to develop an effective Memorandum of Understand-
ing (MOU) with Member States and the applicant countries, so
that the applicant countries can gain maximum benefit from
the Programme and to assist them to create more efficient
customs services.

3.9.
In the debate on the draft decision, the Council has
amended Article 3, which outlines the overall objectives. The
Committee notes that the revised wording asks that customs
policy should be continuously adapted to new developments
‘in partnership between the Commission and the Member
States’. This is an important clarification and emphasis.

The Committee has in the past drawn attention to the
3.10.
problems of fiscal fraud (1). The expectation of the Committee
is that, within the Customs 2007 programme, there will be a
focus on the reduction of fraud and evasion. The Committee
is disappointed that this objective is not emphasised more
strongly. A commitment to greater sharing of intelligence,
cooperation in investigations and effective action where sus-
pect persons or businesses are identified would be invaluable
in demonstrating that Customs 2007 is about positive results.

3.11. Whilst the objectives and methodology of Customs
2007 are welcome, the EESC notes that it is not possible from
the published Communication to assess the ‘value for money’
of the present and proposed actions. The Committee would

welcome some reassurance from the Commission that this has
been assessed in the preparation of the Programme. Some
information of this type is to be found in the Interim Report
on the Customs 2002 programme (2).

4. Specific Comments

4.1.
The Programme should be re-enforced by an oper-
ational plan, with an outline of what is to be done and the
expected results then set out as specific targets and dates etc.
This will add a dynamic to the Programme that will lead and
facilitate change. The Committee has been advised that a
detailed action plan was prepared to implement the Customs
2002 programme and suggests that a similar commitment is
needed for Customs 2007.

4.2.
Since this is a five-year programme there must be a
means of monitoring progress in the early stages and taking
corrective action if necessary. Pre-planned dates for the periods
to be covered by evaluation reports should be included with a
requirement that the report be available not more than 6
months from the end of each defined period. Reports for year
one (2003) and years one to three (2003-2005) are suggested.
This should ensure that achievements are measured against the
action plan.

4.3.
The evaluation should be conducted in collaboration
with the Member States and should be based on objective
criteria and indicators defined before the Programme com-
mences.

4.4.
In particular, the EESC notes that whilst the programme
points to the value of an assessment of the outcomes by
the use of appropriate performance indicators, the outline
programme does not refer to any quantified performance
indicators from the present programme and does not suggest
any specific measures for the new programme. The Committee
would hope that the Commission might be more specific by
relating the proposals to performance measures based on the
projected outcomes of these improved methods of adminis-
tering the customs regime at the external frontiers of the
Community and in monitoring any internal movement of
goods subject to customs supervision. The Committee wel-
comes the plan of the Commission to prepare a series of
impact indicators for this purpose.

( 1) OJ C 268 of 19.9.2000.

(2) SEC(2001) 1329 of 31.7.2001.

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4.4.1.
For the Programme to be successful, there will need
to be an enhanced degree of cooperation with, and from,
the Member States. Member States must provide adequate
resources for improved performance and must accept that the
Community, as a whole, depends on the commitment of
individual Member States.

4.8.3.
Item [g] (formerly [e]) has now been reworded to
make clearer the priority needed to emphasise the potential
benefits of electronic communications within and between the
customs authorities and further emphasise the aspiration to
develop paperless customs procedures with improved and
safeguarded access for users.

In Section 3 of the explanation of

4.5.
the proposal,
referring to the evaluation of Customs 2002, there is comment
on ‘better results’ arising from an exchange of officials but this
is not quantified. There is more detail in the Interim Report on
the 2002 programme (1). This refers to a study that stressed
the need for more specific objectives and continuous monitor-
ing [see para. 3.1.A].

4.6.
In Section 4A, of the proposal for Customs 2007,
there is reference to improvements in key high-risk areas but
these are not quantified and not related to specific objectives
for 2003/2007. The EESC suggests that these should be made
more explicit although the need for confidentiality in the
tactics to be employed is accepted.

4.7.
In Section 4D there is a series of costing estimates. It
seems unclear whether the item under IT Actions is a cost to
the Commission or whether this is intended to cover all
member and applicant countries costs. If the former, then an
estimate should be provided of the costs to member countries.

4.8. Draft Decision: Chapter 1. Scope and Objectives:

Article 4:

In the original draft,

this article was
4.8.1.
described as ‘Specific Objectives’. It has now been revised by
the Council and described as ‘Programme Priorities’ and
Article 3 has been titled ‘Objectives’. This improves the
orientation of the document. The list of the priorities has been
radically amended in a more useful framework. A copy of the
revision made by the Council is attached as Annex 1.

If the programme is to generate maximum benefit in
4.8.2.
Article 4, Items [b],
‘to identify, develop, and apply best
working practices’ and [c] ‘to establish a system of measure-
ment of Member States’ performance in Customs adminis-
tration’ will need to be actioned very early in the five year
programme or even set in place before the end of 2002.

( 1) SEC(2001) 1329.

4.8.4.
Under the original item [j] the proposed ‘managed
training infrastructure’ was unclear. Member States have their
own training facilities and programmes that need to be
coordinated where necessary and shared under joint working/
exchange arrangements. The amended wording, now as item
the priority to common training measures
[k], changes
responding to the needs arising from the programme activities.
This gives the Commission a clearer responsibility to give a
lead in developing an appropriate common organisational
framework for training.

Logically this points to the possible value of the
4.8.4.1.
creation of a formal training centre where the Commission
can provide training for selected officials from Member States.

4.9.
Article 7 Benchmarking: This should be a priority
action. The definition given should be strictly adhered to and
non-specific or otherwise ‘woolly’ measures should be avoided.

4.10.
Article 8 Exchange of officials: this can be a very
valuable tool in ensuring greater cooperation and improved
performance/reduced compliance costs. It is not certain that
the provisions of paragraphs 2 and 3 will be universally
popular or accepted. Article 8.2 might be reworded as follows:
in order to gain the maximum benefit from exchanges, officers
shall have the necessary linguistic skills and shall be authorised,
where possible, to carry out the full range of relevant duties
in the customs administration of the host country. Host
administrations will exercise their discretion to ensure that
no legal difficulties occur and that enforcement actions,
investigations and intelligence operations are not jeopardised
in any way.

Article 9 Seminars: this should be a very valuable part
4.11.
of any programme but one that needs to be carefully con-
trolled. There must be an insistence that participants are
suitably qualified by their experience and responsibilities.
Recommendations from such groups should be clear and
concise. The organising Directorate in the EC should ensure
that the event is costed and evaluated on a value for money
basis.

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4.12.
Article 11 Monitoring: this proposal to monitor
specific sections of Community customs legislation should be
made more specific and firmed up and agreed with the customs
administrations of Member States before the start of the
programme.
4.13.
The obligations of Member States in respect of the
apportionment of costs might be more clearly defined in
respect of the various proposed actions.

4.14.
Critical to the success of the programme and the
enhancement of the standards of effective customs services is
a series of working agreements and methods involving each of
the Member States and supervised by the Commission. These
should include arrangements for tighter controls, common
policies on surveillance and random checks and a balance of
new techniques and official staffing at appropriate levels.

Brussels, 17 July 2002.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on ‘Research needs for a safe and sustainable
energy supply’

(2002/C 241/03)

On 19 March 2002, the European Economic and Social Committee, acting under Rule 23(2) of its Rules
of Procedure, decided to draw up an opinion on ‘Research needs for a safe and sustainable energy supply’.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 26 June 2002. The rapporteur was Mr Wolf.

At its 392nd Plenary Session of 17 and 18 July 2002 (meeting of 17 July), the European Economic and
Social Committee adopted the following opinion by 117 votes in favour, with four abstentions.

1. Preamble

particular, the Green Paper notes Europe’s alarmingly high
dependence on imports of necessary primary energies, which
will rise to almost 70 % by 2030.

The Gothenburg European Council (1) agreed a strategy
1.1.
for sustainable development which completes the Union’s
political commitment to economic and social renewal and
adds a third, environmental dimension to the Lisbon strategy.
The Barcelona European Council (2) confirmed the objective of
sustainable development and made the point that economic,
social and environmental considerations must receive equal
attention in policymaking and decision-taking processes.

1.2.
This also links in with the warnings about EU security
of energy supply set out in the Commission Green Paper (3). In

To build an effective review of the sustainable develop-
1.3.
ment strategy, the Gothenburg European Council asked the
Council to take due account of energy, transport and environ-
ment in the sixth framework programme for research and
development. The Gothenburg European Council also noted
that sustainable development requires global solutions. The
Union will seek to reach a ‘global deal’ at the Johannesburg
World Summit on Sustainable Development.

( 1) Gothenburg European Council,
clusions — SN 200/1/01 REV 1.

June 2001, presidency con-

( 2) Barcelona European Council, March 2002, presidency conclusions

— SN 100/02 ADD 1.

( 3) Green Paper COM(2000) 769 final.

1.4.
In the light of these considerations, the Committee
feels that the need for a secure, low-price, environmentally
sound and sustainable supply of usable energy stands at the
confluence of the objectives set out at Lisbon, Gothenburg and
Barcelona. That said, it is by no means certain that this need