Opinion of the European Economic and Social Committee on the ‘proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code’ (COM(2003) 452 final – 2003/0167 (COD))
Date: 2004-02-26
Institutions: European Economic and Social Committee
Subjects: EU law, customs regulations, customs territory (EU), customs union, simplification of formalities

C 110/72

EN

Official Journal of the European Union

30.4.2004

Opinion of the European Economic and Social Committee on the ‘proposal for a Regulation of the
European Parliament and of the Council amending Council Regulation (EEC) No 2913/92 estab-
lishing the Community Customs Code’

(COM(2003) 452 final – 2003/0167 (COD))

(2004/C 110/13)

On 4 August 2003 the Council decided to consult the European Economic and Social Committee, under
Article 95 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 2 February 2004. The rapporteur was
Mr Simpson.

At its 406th plenary session of 25 and 26 February 2004 (meeting of 26 February 2004), the European
Economic and Social Committee adopted the following opinion by 67 votes, with one abstention.

1. Introduction

1.1
The European Economic and Social Committee (EESC)
has taken a close interest in the evolution of customs policies
as they apply to the import, export, and transit trade of the
European Union and has supported the changes designed to
enhance the role of the customs authorities in the discharge of
their responsibilities including the need to enhance the advan-
the internal market by minimising any delays or
tages of
disruption in the enforcement of
the Community Customs
Code (1).

istration of the customs services yet each of the Member States
will benefit if the procedures are logical and designed to facili-
tate cross-border cooperation.

Ideally,

the procedures

2.2
should be harmonised to
enhance the impact of the Single Market operating with no
internal frontiers and applying an agreed administrative frame-
work for the customs services.

The EESC shares the ambitions outlined by the Commis-
1.2
sion in this publication on the merits of a simple and paperless
environment in which customs functions can be administered
more effectively and efficiently.

Not only does this harmonisation depend on various
2.3
degrees of mutual cooperation in administration and agreement
on verification mechanisms, but it can be further enhanced if
documents are standardised and transmission methods are
modernised.

the

also

acknowledges

The Committee

1.3
changed
emphasis in the strategic approach to customs services' policies
with the recent additional and merited emphasis on the chal-
lenges of the application of common customs policies across a
series of new external borders following the enlargement of the
Union. It also acknowledges the changed environment created
by the raised concerns about security procedures, particularly
with regard to the experience of the USA, to protect citizens in
the Union.

1.4
The EESC therefore welcomes these communications
from the Commission and endorses the amendments proposed
to the Community Customs Code through the revision of Regu-
lation 2913/92.

2. Communication: a simple and paperless environment

2.1
This communication illustrates the constructive role that
can be played by the Commission in coordinating and
the Member
improving the several customs procedures of
States. Each Member State retains responsibility for the admin-

(1) Committee Opinion on Customs 2007, C 241/8 of 7.10.2002.

Committee Opinion on Computerizing excisable goods, C 221/1 of
17.9.2002.

2.4
There is no surprise, therefore, that the Commission has
set out the principles for simplification and the application of
e-Europe concepts in a review to determine methods of better
regulation of customs services.

2.5
Particularly, but not only, because of the new emphasis
on the role of customs services in assessing security risks posed
by terrorism and the trade in dangerous, or offensive, or frau-
dulent goods, the harmonisation of customs procedures is not
only an exercise in the simplification of documentation and
information. Customs services must now use appropriate risk
analysis to determine the degree and methods of surveillance to
identify and deter evasion of customs checks and also to iden-
tify materials that pose wider security risks.

2.6
These responsibilities must be accepted in a manner that
also recognises the objective of facilitating trade within the
Union, particularly
difficulties
extra
following the enlargement of
the Union, and between the
Union and other trading nations. Enhanced vigilance must be
balanced with improved methods that are agreed for all the
Member States of the Union.

acknowledging

the

30.4.2004

EN

Official Journal of the European Union

C 110/73

3. The Commission proposals for a simpler and paperless

— by assisting consumers through the protection against

environment:

goods that are dumped, subsidised or counterfeit,

The Commission has invited the Council and Parliament

3.1
to endorse five strategic goals. These are:

— by protecting public health and the environment by deter-
ring or preventing the import of dangerous substances,

3.1.1
Customs procedures to be fully revised and radically
simplified, integrating modern techniques, including extensive
use of IT and of risk analysis.

— by acting against criminal activities such as money laun-

dering, illegal trade in arms, or child pornography,

— by detecting fraud in the evasion of indirect taxation,

3.1.2
Customs work to be organised so that traders can
benefit from the Internal Market, i.e. irrespective of the place
where a customs procedure begins or where it ends.

— by promoting regional

integration through preferential

trade links;

Customs intervention should ensure that the Internal
3.1.3
Market functions properly and that no barriers, including those
of a digital nature, are introduced or maintained.

Customs controls are of equivalent intensity and relia-
3.1.4
bility at the EU's external borders especially where the protec-
tion of our society and its security is at stake. This requires
common risk management.

3.1.5
Customs IT systems operated by Member States offer
everywhere the same facilities to traders and should be fully
inter-operational.

3.2
The achievement of
depends on acceptance of
Member States and their uniform application.

these strategic goals obviously
the 25
the principles by all of

3.2.1
The Commission points to the logic of an early imple-
mentation of a paperless environment as documents are
accepted using the facilities available to assist e-commerce and
e-administration.

All Member States should introduce arrangements for
3.2.2
the exchange of
technology. This
information using digital
technology should be devised to avoid differences between
Member States that would create digital barriers. Systems
should be co-ordinated to ensure compatibility and connec-
tivity.

3.2.3
The Commission has also identified some basic princi-
ples to simplify customs administration. Border controls would
be limited mainly to security aspects of customs verification
and other controls should be shifted to the customs authorities
responsible for the trader's premises. This would reduce the
risks of fraud and non-compliance.

3.2.4
The Commission sees itself as a necessary catalyst in
the design and introduction of these changes. The needs are
assessed as those of securing inter-operability through the
further development of the e-Europe 2005 initiative. They also
see a need for an understanding of the relevance and applica-
tion of the ‘better regulation’ initiative outlined in the White
Paper on European Governance.

The beneficiaries from improved customs services would

3.3
include:

3.3.1

society; through enhanced protection:

3.3.2
services:

businesses; through easier and more efficient customs

— through more efficient customs services,

— improved facilitation of

trade transactions, particularly
where the point of import, or export, is distant (and across
the borders of Member States) from the point of destina-
tion, or origin,

— by enhancing the degree of uniformity in the application of

customs law,

— by enabling the use of a single entry point for customs
declarations (enhanced by the existing provisions for transit
from the point of entry to the destination),

— through simplification and standardisation of information
requirements and simplified administration procedures,

— through a reduction in the need for physical controls by

the use of appropriate risk analysis techniques.

4. General comments from the EESC on the communica-
tion on a simpler and paperless environment
for
customs services

4.1
The EESC fully accepts the strategic goals as formulated
by the Commission for the improved customs services environ-
ment.

4.2
There is, understandably, a tension between efforts to
simplify and facilitate trade in contrast to the need to improve
the standards of enforcement. This tension calls for greater
clarity of objectives, risk assessment to identify the need for
that
closer or more
common standards are enforced across all the external borders
of the Union.

relaxed supervision, and assurance

The Committee acknowledges that customs supervi-
4.2.1
sion now needs,
in the wake of events in the USA on 11
September 2001, to take account not only of breaches of
trading regulations and customs duties but also the need for
enhanced security protection to deter terrorist activity.

4.3
The Committee has noted the more detailed administra-
tive proposals that the Commission is going to discuss with the
relevant representatives of the Member States in the prepara-
tion of an Action Plan.

C 110/74

EN

Official Journal of the European Union

30.4.2004

The basic principles are logical and desirable. In particu-

4.4
lar, the Committee notes the focus on:

— acting, across the Community, (de facto) as a single admin-

istration,

— sharing risk related data,

— maximising the common rules and data requirements,

— introducing a Single European Authorisation procedure to

enhance suspensive arrangements,

5.2
The aim of the communication is ‘to give customs and
the other authorities responsible for managing goods at the
external border, the resources needed to combat any risk to the
Community's safety and security in a coordinated manner’. (5)

The Commission asks for support so that the proposals
5.3
for
implementation can be presented without delay. The
Commission acknowledges that it is acting as a catalyst for
actions throughout the Community. In addition there is an
acknowledgement that the implementation of the proposals
will require financial commitments at Community level to help
to secure the refinement of administrative systems to enhance
interoperability taking particular account of the needs of the
new Member States.

— reducing the 13 existing customs treatments (procedures
and paperwork) into a group of three types (import, export
including re-export, and suspensive arrangements),

The Guidelines for the discussion of these changes are

5.4
based on five groups of proposals. These are to:

— sharing data electronically,

— setting a transitional timetable for a move from paper-based

systems to electronic systems,

— enhancing the inter-operability of national systems,

— quicker release of goods aided by traders following agreed

procedures on notification (and pre-notification),

— agreement on the rights and responsibilities of traders and

freight forwarders.

4.5
The Committee has noted the six proposals for action
under this enhanced e-customs programme and welcomes the
ambitious timetable for discussion and later implementation.

4.6
The Committee wishes to draw two specific features of
these principles to the attention of the Commission. First, the
Committee endorses the emphasis on the potential use of the
‘new technologies’ [ICT] and suggests that the Commission
should specifically develop an extension of the IDA project to
assist the administration of customs services. (2) Second, and in
a cautionary restraint on the application of ICT systems, the
Committee has a concern that the sharing of data electronically
should pay particular regard to the need for business, personal
and commercial confidentiality for traders.

5. Communication: The role of customs in the integrated

management of external borders

In this second communication,

5.1
the Commission has
asked the Council, Parliament and the EESC to endorse a series
of measures to improve the integrated management of the
external borders. These proposals further develop the strategy
for the Customs Union that was endorsed by Council Resolu-
tion in June 2001 (3). This communication is a direct sequel to
the earlier communication from the Commission, May 2002,
on the integrated management of the external borders (4).

(2) The EESC Opinion on the interoperable delivery of pan-European
eGovernment Services commends the merits of the IDA and IDABC
proposals [see TEN/154].

(3) OJ C 171, 15.6.2001.
(4) COM(2002) 233, 7.5.2002.

i. rationalise the number of customs controls at customs

border posts,

ii.

introduce a common approach to goods-linked risks and
implement it using common collaboration and cooperation
mechanism,

iii. guarantee an adequate level of human resources and equip-

ment at external borders,

iv. set up a legal and regulatory framework integrating the

security dimension of customs work,

v.

introduce closer cooperation with the police, border guards
and other authorities at external borders,

6. General comments on the communication on the inte-

grated management of external borders

6.1
The first two guidelines (in point 5.4) are developments
of the ambitions expressed in the earlier discussion (see above)
on the introduction of a simpler and paper-free environment
for customs services.

6.1.1
The EESC notes the use, by the Commission, of the
word ‘rationalise’ in reference to the number of customs posts.
Given the various priority tasks to be examined, the Committee
would prefer the Commission to seek to optimise the number
rather than adopting an approach that may seem to be less
sensitive to changing needs.

The other three guidelines take the discussion into
6.2
topics that embrace other services as well as customs services
and propose cooperative models of operation that make for a
strengthened administration at the external borders.

The proposals to attempt to provide adequate human
6.3
resources and equipment are a logical ambition for the Com-
munity but
the detailed suggestions carry extra costs that
would particularly fall heavily on the new Member States. If
there is a Community interest in securing improvements at
external borders, then a dedicated financial instrument would
be desirable. This, in turn, opens the door to consideration of
the extension of the limits of Community responsibilities.

(5) COM(2003) 452, 24.7.2003, p. 37.

30.4.2004

EN

Official Journal of the European Union

C 110/75

6.4
Not only is there a case for the Community to provide
financial support to facilitate the enhanced policies as they
the Commission also proposes
affect new Member States,
further developments
for
customs staff, steps to identify best working practices for
security at external borders, and rapid-reaction teams to deal
with unexpected risks.

in common training measures

6.5
These needs, and opportunities, demonstrate that there
is a strong case to enhance the ability of the Commission, on
behalf of the Community, to have greater authority to deal
with these issues. In particular, the Committee is in favour of
the introduction of Community inspections to make sure that
customs coordination is effective at the EU's external borders.

6.6
The case for stronger cooperation and authority for the
various agencies at external borders goes beyond only the
customs services. The EESC commends the Commission for the
identification of these needs but notes that improvements will
essentially rely on good cooperative working arrangements
between agencies that have shared responsibilities but are
accountable to different national authorities and retain respon-
sibilities that do not uniformly match those of the customs
services.

The EESC endorses the suggestion that, for these impor-
6.7
tant services, the Commission should promote responsibility-
sharing agreements based on the mutual interests of the agen-
cies.

6.8
The EESC welcomes the decision of the Council, on 5
November 2003, to endorse the Commissions proposals to
strengthen the role of customs in managing security at the
external borders and notes the request to the Commission to
present all necessary proposals to implement this approach
whilst paying special attention to the strengthening of the
information exchange between all administrations and opera-
tors involved in international trade. (6)

7. Regulation to amend Regulation 2913/92 establishing

the Community Customs Code

7.1
The two communications from the Commission precede
the publication of a draft Regulation amending Council Regu-
lation 2913/92 establishing the Community Customs Code.

7.2
Since this draft Regulation reflects some of the main
proposals in the two communications that can be assisted by a
formal amendment to the Customs Code, and since the EESC
welcomes the thrust of these proposals, the EESC welcomes
most of the proposed amendments to the current Regulation.

The consistency and effectiveness of a Community-wide
7.3
application of customs policies can only be improved by these
measures. The Committee notes the legislative proposals that
will clarify:

(6) ECOFIN Council conclusions, 5 November 2003

— the wider concept of customs responsibility extending to
other legislation relating to the import and export of goods
and the co-ordination of actions with other formal authori-
ties;

— more precise definitions of terminology of ‘operators’;

— putting responsibility on the Commission to establish a

common risk management framework;

— clarifying the use in exchanges of confidential data.

7.4
A key feature of the proposed Regulation is the intro-
duction of a requirement that customs declarations should be
presented before goods arrive. This links to the underlining of
the principle that goods should be finally cleared by customs at
a point where the trader is established, near to the declared
destination, rather than at the external frontiers.

The Committee does, however, have a serious reserva-
7.5
tion about the ‘basic rule’ that a pre-arrival declaration must be
lodged 24 hours before the goods are presented to customs.
The Commission does acknowledge that trade in some cate-
gories of goods would be delayed, with critically disadvanta-
geous effects, if this rule was applied to them. Examples are
goods which are transported in a journey taking less than 24
hours.

7.6
The proposed wording of Article 36a of the Customs
Code does offer the prospect of procedures to determine when
the 24 hour requirement may be waived. The Committee
suggest that the rules, setting out when 24 hour advance notifi-
cation is required, should be clarified before the Code is
amended so that the many areas where trade may be adversely
affected are explicitly identified and appropriate compromise
procedures formally adopted rather than being considered as ad
hoc waivers to the basic rule. A general waiver
should,
however, be provided for exports by authorised economic
operators as their procedures have already been checked when
the authorisation was granted.

8. Summary

8.1
These Commission Communications and proposed new
Regulation offer a prospect of the enhanced application of a
uniform customs code across the Community.

The proposed regulation amending the Community
8.2
Customs Code will be consistent with the principles outlined in
the two Communications only in the event of uniform imple-
mentation and only if this includes electronic systems.

8.3
The principles of a simpler and paperless environment
for Customs and Trade are now logical and practical. They are
also necessary if the internal market of the Union is to function
without unnecessary handicap.

C 110/76

EN

Official Journal of the European Union

30.4.2004

8.4
The principles of seeking to establish common customs
standards at the external frontiers of the Union are inherent in
the concept of the Union as a single trading area.

The EESC would wish to see the range of improvements

8.6
to policies and services made effective as soon as possible.

8.5
Also, the acknowledgement of the need for a co-opera-
tive framework to ensure maximum effectiveness of customs
services, border policing, security surveillance and common
risk management strategies is to be commended.

8.7
In the absence of a Community responsibility for the
delivery of customs services, these changes move closer to the
framework of a single customs agency which can enhance the
functioning of the Community.

Brussels, 26 February 2004.

The President

of the European Economic and Social
Committee

Roger BRIESCH