Communication from the Commission to the Council and the European Parliament - Community Programmes Customs 2013 and Fiscalis 2013 {SEC(2005) 423}
Date: 2005-04-06
Institutions: European Commission
Subjects: EU programme, action programme, customs cooperation, tax system

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.4.2005 
COM(2005) 111 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Community Programmes Customs 2013 and Fiscalis 2013 

{SEC(2005) 423} 

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TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

Background .................................................................................................................. 4 

Customs........................................................................................................................ 4 

Indirect taxation ........................................................................................................... 4 

1.2.1.  VAT.............................................................................................................................. 4 

1.2.2.  Excise duties................................................................................................................. 5 

1.3. 

1.4. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

3.1. 

3.2. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

5. 

6. 

1. 

2. 

3. 

4. 

Direct taxation.............................................................................................................. 5 

Financial perspectives .................................................................................................. 5 

The present programmes .............................................................................................. 5 

The backbone of the Trans-European computerised networks .................................... 6 

Trans-European computerised networks for customs .................................................. 6 

Trans-European computerised networks for taxation .................................................. 6 

Joint actions.................................................................................................................. 6 

Policy challenges to be addressed by the successor programmes................................ 7 

Customs........................................................................................................................ 7 

Taxation........................................................................................................................ 8 

Implementation Challenges for the Successor Programmes........................................ 9 

Trans European computerised networks ...................................................................... 9 

The strategic importance of the trans-European computerised networks .................... 9 

Joint Actions................................................................................................................. 9 

Common Training Tools ............................................................................................ 10 

Candidate countries, Western Balkan Countries, European Neighbourhood Policy 
and Third Countries.................................................................................................... 10 

Budget ........................................................................................................................ 10 

Conclusion.................................................................................................................. 11 

NAME OF THE PROPOSAL :.................................................................................. 14 

ABM / ABB FRAMEWORK .................................................................................... 14 

BUDGET LINES ....................................................................................................... 14 

SUMMARY OF RESOURCES................................................................................. 15 

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1. 

BACKGROUND 

When the Internal Market was created in 1993 the most visible change was the abolition of 
border  controls  between  the  EU  Member  States  making  the  free  movement  of  goods  and 
services possible. Intra-Community trade in goods is now worth around EUR 1 500 billion per 
year and has almost doubled since the internal borders were removed. 

Customs  and  tax  administrations  play  a  crucial  role  in  the  Community  in  maintaining  and 
developing  the  internal  market,  applying  controls  at  the  external  frontier  and  protecting  the 
Community's financial and other interests. The customs and tax programmes are essential in 
this  work  and,  without  them,  Europe's  commerce  would  be  severely  disrupted,  its 
competitiveness weakened and the safety and security of its citizens threatened. In the face of 
new challenges and ongoing change, enhancements and developments, especially in the field 
of IT, are unavoidable. This communication sets out a coherent strategy to provide a response 
to these challenges through the future EU customs and tax programmes. 

This  Communication  on  the  Customs  2013  and  Fiscalis  2013  Community  programmes  that 
are expected to run during the 2007–2013 period, pre-empts the Commission proposal for the 
successor  programmes  Customs  2013  and  Fiscalis  2013  pending  the  outcome  of  the 
intermediate evaluations. 

1.1. 

Customs 

Today's  customs  must  ensure  the  smooth  flow  of  external  trade  on  the  one  hand  while 
applying effective controls on the international supply chain in order to: 

–  ensure the safety and security of the citizens of the EU; 

–  facilitate legitimate trade while protecting the Community from unfair and illegal trade; 

–  increase the competitiveness of European business via modern working methods supported 

by an easily accessible electronic customs environment; 

–  protect the financial interests of the EU and its Member States; 

–  manage the external border1 as a project of mutual interest for the European Union and its 

neighbours; 

–  cooperate nationally and internationally to combat fraud and promote legitimate trade. 

1.2. 

Indirect taxation 

1.2.1.  VAT 

As  a  direct  consequence  of  the  abolition  of  controls  at  the  internal  frontiers  of  the 
Community, tax administrations are required to exchange information to ensure that taxable 
persons are properly accounting for VAT. The principles of the internal market, particularly 

1 

COM(2003) 452 and OJ C 96, 21.4.2004, p. 5 – Paperless environment for Customs and Trade at the 
external frontier. 

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that  of  the  free  movement  of  goods  have  created  greater  interdependence  between  tax 
administrations.  This  interdependence  arises  in  two  ways.  Firstly,  tax  administrations  are 
dependent  on  one  another  for  the  electronic  information  which  flows  through  the  VAT 
Information Exchange System (VIES), and which provides the information necessary for the 
tax administrations to ensure that the VAT arising from the trade in goods between Member 
States  is  correctly  accounted  for.  Secondly,  tax  administrations  must  cooperate  closely  to 
ensure  that  they  identify  fraudulent  traders  quickly  and  deal  with  them  to  prevent  any 
distortion of competition in the single market.  

1.2.2.  Excise duties 

The  destination  principle  enshrined  in  EU  excise  law  has  complicated  the  administration  of 
the  excise  system  and  has  required  administrative  systems  to  physically  monitor  the 
movement of excise products between Member States.  

1.3. 

Direct taxation 

Direct taxes also have an impact on the functioning of the common market. Taxation policies 
must therefore clearly take into account important Union objectives, such as further deepening 
and supporting the functioning of the single market and promoting growth and employment 
while at the same time protecting tax bases against harmful tax competition and tax fraud as 
well as making life easier for legitimate business. 

1.4. 

Financial perspectives 

By  ensuring  the  smooth  functioning  of  the  Internal  Market,  the  Fiscalis  and  Customs 
programmes will contribute to the broader objective of sustainable economic growth set out in 
the  Commission  Communication  on  the  financial  perspectives  2007-20132.  The  second 
Commission  Communication3  on  these  perspectives  explicitly  refers  to  the  Fiscalis  and 
Customs  programmes  as  one  of  the  practical  measures  required.  The  programmes  fall  into 
subheading 1a – Competitiveness for growth and employment. 

2. 

THE PRESENT PROGRAMMES

4 

The  Customs  2007  programme5  aims  to  guarantee  the  effective  functioning  of  the  internal 
market in the field of customs while the Fiscalis 2003–2007 programme6 aims to improve the 
operation of taxation systems in the internal market.  

The interim evaluation for both programmes which started at the beginning of 2005, and the 
impact  assessment  will  provide  further  material  for  supporting  the  successor  programmes. 
Their recommendations will be incorporated in the proposals for the successor programmes, 
which are planned to be submitted for adoption in early 2006. 

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5 
6 

COM(2004) 101, 10.2.2004 (OJ C 98, 23.4.2004, p. 6). 
COM(2004) 487, 14.7.2004, p. 13 (OJ C 24, 29.1.2005, p. 6). 
Information on the budget is provided in Annex 1. 
Decision No 253/2003/EC of 11 February 2003 (OJ L 36, 12.2.2003, p. 1). 
Decision No 2235/2002/EC of 3 December 2002 (OJ L 34, 17.12.2002, p. 1). 

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2.1. 

The backbone of the Trans-European computerised networks 

The  backbone  for  the  electronic  exchange  of  information  is  the  secure  network  CCN/CSI 
(Common Communication Network/Common System Interface) used by customs and tax 
administrations  and  financed  under  both  programmes.  Via  CCN/CSI,  national  and 
Community  records  are  made  available  in  a  highly  secure  way  at  a  European  wide  level. 
Some 180 million messages were handled by CCN/CSI in 2004. 

Most  of  the  Community  databases  (EBTI,  TQS,  ECICS7)  and  some  of  the  national 
information  records  are  available  for  consultation  via  Internet  through  a  portal  setup  on  the 
EUROPA  web  site  and  called  DDS  (Data  Dissemination  System).  More  than  34  million 
queries were made in 2004.  

2.2. 

Trans-European computerised networks for customs 

In  the  field  of  customs,  the  New  Computerised  Transit  System  (NCTS)  assures  the 
transmission of the customs transit declaration of goods simultaneously with and prior to the 
physical  transport  of  the  goods.  It  increases  the  capacity  of  customs  both  to  ensure  correct 
customs  control  of  these  movements  and  to  reduce  operators'  costs.  In  2004,  more  than  5,5 
million  international  transit  movements  were  recorded.  The  Common  Community  Tariff 
system  (TARIC)  provides  information  vital  for  the  correct  and  uniform  application  of  tariff 
legislation  to  external  trade  by  all  Member  States.  Some  27  million  queries  were  made  in 
2004. 

With the launching of the electronic customs initiative the first steps have been taken on the 
road to a paperless customs environment. 

2.3. 

Trans-European computerised networks for taxation 

The  VAT  Information  Exchange  System  (VIES)  brings  together  national  VAT 
databases.  Its  primary  purpose  is  to  allow  the  exchange  of  information  between  Member 
States  regarding  exempt  intra-Community  supplies  of  goods,  thereby  allowing  the  tax 
administrations to correctly control the taxation of supplies of goods in the single market. In 
2004, 80 million messages were exchanged through VIES. 

The Commission is also developing the Excise Movement Control System (EMCS)8 project 
establishing  an  IT  system  to  monitor  the  movement  of  excise  products  under  suspension  of 
excise  duty.  Meanwhile,  a  number  of  intermediate  systems  allowing  for  the  exchange  of 
data  on  excisable  goods,  warehouses  and  traders  in  excise  goods  have  been  put  in  place 
and are constantly updated and improved. 

2.4. 

Joint actions 

Experience with the organisation of activities for officials is longstanding and has its roots in 
the predecessors of Customs and Fiscalis programmes, launched in 1991.  

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8 

EBTI:  European  Binding  Tariff  Information;  TQS:  Tariff  Quota  and  Surveillance  System;  ECICS: 
European Customs Inventory of Chemical Substances. 
Decision No 1152/2003/EC of 16 June 2003 (OJ L 162, 1.7.2003, p. 5). 

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These joint actions have proved to be extremely useful for developing and disseminating best 
administrative  practice,  confidence  building  and  for  stimulating  and  developing  cooperation 
between national administrations. 

3. 

POLICY CHALLENGES TO BE ADDRESSED BY THE SUCCESSOR PROGRAMMES 

3.1. 

Customs 

Common  implementation  of  Community  customs  law  is  essential  in  order  to  avoid 
distortions of the market. In terms of the globalisation of trade, customs activities must be 
consistent  with  the  aim  of  ensuring  that  the  European  Union  remains  competitive.  Customs 
must therefore ensure the smooth flow of trade whilst applying the necessary checks for risks 
that external trade might present to security, health, safety and the economic interests of the 
Union.  

Customs  has  a  unique  position  in  relation  to  the  new  challenge  of  securing  the  supply 
chain. Having control over all aspects of international movements, customs has an overview 
of all the players, within the EU, at the physical external frontier and in third countries. With 
the burden of controlling the Community's external land frontier falling disproportionately on 
the newer Member States, it is also important to consider the possibility of financial support 
for joint operations in order to improve the consistency of controls.  

Effective  control  can  only  be  achieved  through  the  use  of  common  risk  management. 
Risk  management  must  be  incorporated  into  all  aspects  of  customs  work,  including  IT 
systems  and  must  also  be  constantly  monitored  and  developed.  For  risk  management  and 
profiling  to  be  effective,  there  is  a  need  to  ensure  rapid  exchange  of  information  between 
customs control points as well as with other agencies.  

In order to avoid serious distortions of trade and threats to the Community’s security, 
continued  efforts  will  be  needed  to  ensure  that  controls  are  implemented  effectively  at 
every  point  of  the  Community’s  customs  territory.  This  will  require  operational  actions 
specifically  targeted  at  setting  and  monitoring  control  standards  and  ensuring  that  national 
customs administrations have adequate means to achieve these objectives. The development 
and  implementation  of  new  working  practices,  strengthened  cooperation9,  and  systematic 
sharing of common practice, supported by measurement, monitoring and reporting will be a 
prerequisite  to  meet  new  threats  to  security  and  safety  and  to  guarantee  a  high  standard  of 
effective  customs  controls.  Actions  in  this  area  will  also  contribute  to  meeting  the 
expectations of the different stakeholders, particularly in the reduction of compliance costs for 
economic operators. It is also important to ensure complementarity between the activities in 
the  field  of  customs,  as  financed  under  the  Customs  2013  Programme,  and  activities  in  the 
field  of  control  of  people  at  the  external  borders  including  those  of  the  External  Border 
Agency. 

9 

In  particular  with  the  European  Agency  for  the  Operational  Management  at  the  External  Borders 
(Council Regulation (EC) No 2007/2004 of 25 November 2004). 

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Counterfeiting  and  piracy  causes  huge  economic  damage  and,  since  customs  is  the  major 
interceptor  of  such  goods,  it  is  essential  that  this  is  combated  in  an  efficient  way.  This  will 
include improvements to risk indicators in the field. 

In order to follow these priority issues, and recognising the trend towards e-government, 
it  is  necessary  to  modernise  customs  legislation  and  to  radically  simplify  it.  Legislation 
alone will not be sufficient and there is a pressing need to develop new integrated systems or 
reshape existing ones. The programme will be the only way to make the electronic customs 
initiative10  fully  operational.  From  an  IT  point  of  view,  it  will  allow  the  transmission  of 
customs declarations between customs offices in different Member States, together with the 
possibility  of  the  interchange  of  information  with  existing  databases.  This  will  not  only 
improve  the  risk  management  of  imported  and  exported  goods,  but  also  customs  clearance 
where the customs office of entry or exit is in a Member State other than that of the customs 
office of import or export.  

3.2. 

Taxation 

The Commission believes that the main priority for tax policy is addressing the concerns 
of  individuals  and  businesses  operating  within  the  Internal  Market  by  focusing  on  the 
elimination of tax obstacles to all forms of cross-border economic activity. In addition it 
has been evident that other issues that adversely affect the functioning of the market also need 
to be addressed, in particular the fight against harmful tax competition and tax fraud. 

In recent times all of the legal instruments for cooperation in the fields of VAT, excise and 
direct  taxation  and  recovery  have  been  reinforced.  These  legal  instruments  have  further 
strengthened the consolidation of a well developed and efficient administrative cooperation 
structure which is underpinned by the Fiscalis programme. The successor programme should 
build  upon  the  work  of  the  current  programmes  and  aim  at  better  understanding  and 
implementation  of  Community  law,  improved  cooperation,  continued  improvement  of 
administrative  procedures  for  administrations  and  taxpayers,  dissemination  of  good 
administrative practice and the fight against fraud. 

The exchange of information between administrations plays an important  role  in solving a 
number  of  difficult  issues,  such  as  enabling  the  effective  taxation  of  savings  income. 
Similarly, in the VAT and excise fields, the exchange of information solution is being seen as 
almost  a  precondition  for  further  progress.  Examples  of  this  philosophy  in  the  VAT  field 
include  the  Commission  proposal11  for  a  one-stop  shop  for  businesses  trading  in  more  than 
one Member State and the proposal to change the place of supply of services. In the future, it 
is more and more likely that an IT solution will be seen as a first resort.  

The growing need to improve transparency and the effective exchange of information is not 
limited  to  the  Member  States  or  the  immediate  neighbours  of  the  EU.  In  the  active 
promotion  of  sound  practices,  as  outlined  in  the  Commission's  Communication12  on 
preventing and combating corporate and financial malpractice, the Fiscalis programme could 
also prove to be a useful tool in support of reform in the so-called cooperative tax havens and, 
more generally,  EU partners. The lessons which  have been learned from recent high-profile 

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COM(2003) 452, 24.7.2003 (OJ C 96, 21.4.2004, p. 5). 
COM(2004) 728, 29.10.2004 (OJ C 24, 29.1.2005, p. 9). 
COM(2004) 611, 27.9.2004. 

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fraud  cases  have  convinced  the  Commission  that  a  more  widespread  use  of  administrative 
cooperation  is  necessary  so  as  to  avoid  the  manipulation  of  the  rules  by  unscrupulous 
businesses.  

4. 

IMPLEMENTATION CHALLENGES FOR THE SUCCESSOR PROGRAMMES 

4.1. 

Trans European computerised networks 

During the last years, the  Trans-European computerised networks became of strategic 
importance for the operational activities of European customs and tax administrations. 
The  huge  success  of  CCN/CSI  and  the  tax  and  customs  IT  systems  has  resulted  in  a 
tremendous increase in use of these systems, which has caused a doubling of capacity on an 
annual basis. The traffic generated by the 10 new Member States is only part of the reason for 
this  increase,  since  the  surge  is  primarily  the  result  of  more  intensive  use  of  the  systems  to 
facilitate trade, to control the main bulk of cross-border transactions and to fight fraud. It is 
expected  that  tax  and  customs  officials  will  make  even  greater  use  of  the  systems  in  the 
coming years. 

The more intensive use of the systems will require further upgrading of the CCN system and 
it is expected that security arrangements will need to be reviewed and improved in the very 
near future. 

The progressive build-up of centralised operations and management of these trans-European 
computerised networks will also be of major importance and impact. As well as the increased 
efficiency which would result from the use of a single system rather than the multiplication of 
national systems which exist today, this would result in major savings at a national level.  

4.2. 

The strategic importance of the trans-European computerised networks 

If the European computerised customs network were unavailable, the old paper system 
would  have  to  be  used.  This  would  provoke  serious  delays  in  the  movement  of  goods, 
which  economic  operators  are  no  longer  willing  to  accept.  The  unavailability  or 
malfunctioning of these systems would also have a considerable adverse impact on business 
through the incorrect application of the tariff and the customs code, and traffic blockages at 
the borders, quickly leading to damaging consequences to trade.  

Similarly,  the  unavailability  or  malfunctioning  of  the  VIES  system  would  jeopardise  VAT 
controls and pave the way for large-scale fraud such as carousel fraud. 

4.3. 

Joint Actions 

The  Lisbon  Strategy  emphasises  that  the  work  on  the  Internal  Market  is  shifting  from  law 
making  towards  practical  implementation  by  Member  States  of  the  different  measures  on  a 
daily basis. Joint actions addressed this issue from the start and have become a key instrument 
of  the  Commission  and  Member  States  to  foster  a  unique  cooperation  culture  between  the 
Member States. There is a need to ensure the active participation of Member States because of 
the  knowledge  and  the  expertise  they  have  in  many  areas,  to  further  strengthen  mutual 
assistance and to expand cooperation to officials working outside headquarters. 

In  order  to  make  efficient  use  of  the  resources  available  in  the  Community,  a  range  of 
possibilities will need to be explored, including sharing equipment between Member States, 

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exchanging know-how on the deployment and use of equipment and financial support for the 
purchase of equipment.  

4.4. 

Common Training Tools 

Common training is an essential element in ensuring a uniform approach to Member States' 
actions.  The  work  on  the  development  of  common  training  tools  and  the  use  of  e-learning 
tools must continue and a new impetus must be given to the distribution of the outcomes and 
results  of  activities.  In  addition  to  these,  and  especially  in  the  field  of  customs,  further 
consideration  must  be  given  to  the  provision  of  common  training  in  core  areas  at  European 
level. 

4.5. 

Candidate  countries,  Western  Balkan  Countries,  European  Neighbourhood 
Policy and Third Countries 

In both the Customs 2013 and Fiscalis 2013 programmes, there will be an external component 
financed  by  the  Pre-Accession  Instrument  under  heading  4  of  the  Financial  Perspectives 
2007-2013.  Specific  arrangements  will  be  agreed  with  the  RELEX  Directorates-General  for 
the programming and implementation of the funds involved. 

With regard to security, international cooperation based on common standards and mutual 
recognition  of  control  results  is  the  only  way  to  efficiently  reduce  the  burden  on  legitimate 
traders. Such cooperation is therefore a priority task under a new programme. 

The programmes will provide assistance to candidate countries and may provide assistance 
to the partner countries of the European Neighbourhood Policy  and other third countries. In 
the field of customs, it is important to take initiatives that will align the working practices of 
our  neighbours  and  trading  partners  with  Community  legislation  and  strengthen  their 
administrative  and  operational  capacity,  for  example  in  terms  of  controls  on  prohibited, 
dangerous  and  illegal  goods.  Within  the  tax  field  it  is  important  to  help  these  countries 
strengthen  their  administrative  capacity  to  be  able  to  cooperate  in  particular  to  fight  cross-
border tax frauds. Interconnectivity with our computerised systems has to be established for 
customs  and  tax  administrations  of  candidate  countries  before  the  date  of  accession. 
Interconnectivity  may  also  be  envisaged  for  customs  and  tax  administrations  of  other 
neighbouring countries, on a case by case basis according to the needs. 

5. 

BUDGET 

The budgets proposed for the programmes show a significant increase over a six year period, 
namely  from  EUR  157,435  million  to  EUR  323,8  million  for  the  Customs  programme  and 
from  EUR  67,25  million  to  EUR  175,30  million  for  the  Fiscalis  programme.  The  rise  is 
mainly due to the development of new computerised systems to support the new business and 
legislative initiatives in the customs and taxation area that are expected in the near future.  

In the customs area it is envisaged that EUR 77 million is required to operate and evolve the 
existing  TRANSIT  and  Tariff  systems13.  The  Customs  2013  budget  includes  EUR  104,5 
million  over  six  years  to  carry  out  the  electronic  customs  project  which  is  currently  being 

13 

Transit EUR 41 million and Tariff EUR 36 million. 

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drafted. Systems required for managing initiatives related to the security aspects of customs 
policy, are estimated to require EUR 38,7 million.  

In the Customs 2013 programme an amount of EUR 46 million is budgeted to finance joint 
actions. The budget has been increased from 2007 to 2008 as it is expected that the external 
border  policy  will  result  in  a  surge  of  activities  with  non-EU  countries,  especially 
neighbouring  countries14.  Finally  the  Customs  programme  foresees  an  amount  of  EUR  11,4 
million over six years to support the development of common training tools in support of the 
customs  policy  objectives  mentioned  earlier.  The  common  training  initiatives  will  continue 
the initiatives developed under the current programme.  

In the tax area EUR 30,3 million will be required to operate and evolve the VIES system. As 
from 2009, the Fiscalis 2013 programme will incorporate the EMCS system. It is estimated 
that  over  six  years  EUR  19,5  million  is  needed  for  EMCS.  Finally,  an  amount  of  EUR  37 
million  has  been  budgeted  to  support  new  policy  initiatives  in  the  tax  area  like  the  VIES  II 
system,  the  one-stop  shop  facility  for  traders  and  new  initiatives  for  the  exchange  of 
information.  The  joint  actions  on  taxation  are  budgeted  at  EUR  39  million.  The  Fiscalis 
programme will also support the development of common training tools. This initiative is new 
and is expected to start at the beginning of the new programme in connection with the new 
legal initiatives. An amount of EUR 3,3 million is budgeted. 

Finally, both successor programmes include a significant higher amount for the CCN system: 
EUR  46,2  million  for  each  programme  as  compared  to  EUR  18,5  million  in  each  of  the 
present  programmes.  This  sharp  increase  has  been  budgeted  to  support  the  current  trend  of 
doubling  capacity  every  year.  This  reality  is  confirmed  by  the  continuous  need  for 
interoperability and the level of availability required. Indeed, the IT systems financed by the 
programmes  need  to  be  available  increasingly  on  a  permanent  basis,  24  hours  a  day  and  7 
days  a  week.  To  attain  this  level  of  availability  an  exponential  increase  in  the  budget  is 
required as this involves setting up fall-back architectures and associated services. 

Currently, the Customs programme only finances first-pillar activities. As it is impossible to 
confine  customs  actions  to  a  specific  pillar  activity,  the  future  programme  should  allow  for 
co- financing from first and third pillar programmes. 

6. 

CONCLUSION 

The Customs and Fiscalis programmes 2007 are improving cooperation between customs and 
tax  administrations  and  their  officials  and  are  establishing  trans-European  computerised 
networks required to meet the customs control obligations within the internal market and to 
maintain  taxation  of  goods  and  services  in  accordance  with  national  and  Community  tax 
legislation within this market. The programmes play a key role in the smooth functioning of 
the internal market and the management of the EU's external border, and as such contribute to 
the realisation of the Commission's 2005–2009 objectives and the Lisbon Strategy. Therefore, 
the  Commission  proposes  to  have  two  successor  programmes,  Fiscalis  2013  and  Customs 

14 

The  joint  actions  of  the  internal  budget  line  will  finance  the  participation  of  Member  States  in  these 
activities. Participation by third countries will be financed from the external budget line.  

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2013 inserted in the Financial Perspectives 2007–2013 and to finance the EMCS project from 
Fiscalis 2013 as from 200915. 

The  renewal  of  the  programmes  is  essential  for  the  competitiveness  of  European  trade,  the 
collection  and  protection  of  Community  revenues  and  the  safety  and  security  of  the  EU 
citizens.  The  enormous  volume  of  customs  declarations,  coupled  with  the  demands  for 
facilitation  of  legitimate  commerce  and  the  expectations  of  stakeholders  regarding  the 
protection  of  their  interests,  can  only  be  met  with  the  actions  which  are  supported  by  the 
Customs  programme.  The  Community  element  of  the  IT  systems  is  crucial:  improving 
controls  and  increasing  trade  facilitation  requires  electronic  exchange  of  data  between 
economic  operators  and  customs,  the  rapid  provision  of  high-risk  information  to  customs 
posts and the  key actors  having access to up-to-the-minute customs information. The single 
market  demands  equivalent  treatment  throughout  the  Community  and  the  Customs 
programme make an essential contribution to the prevention of divergent practice by customs 
in their application of Community legislation. Furthermore, without the programme customs 
would find it much more difficult to apply effective controls with reasonable compliance costs 
for  business.  The  discontinuation  of  the  Customs  programme  would  put  at  risk  European 
competitiveness, security and employment and adversely impact on the perception of the EU 
as a single entity in international discussions. 

If the current Fiscalis programme were to be interrupted, the functioning of the single market 
would  be  put  in  jeopardy,  because  of  the  role  of  the  programme  in  financing  the  VAT 
Information  Exchange  System  (VIES)  as  well  as  several  key  excise  systems.  The  VIES 
system currently provides information to Member States so that they can undertake control of 
intra-Community  tax  transactions  in  an  EU  without internal borders and at the same time it 
makes it easier for business to trade in the internal market. Without this electronic exchange 
of  information,  Member  States  would  have  to  find  another  methodology  for  VAT  controls, 
and  this  would  be  a  step  backward  in  terms  of  burdens  on  businesses.  Furthermore,  it  is 
essential  to  foster  and  develop  administrative  cooperation  between  tax  administrations,  and 
the Fiscalis programme is ideally placed to do this. 

15 

The successor programmes will run from 1 January 2008 to 31 December 2013. 

EN 

11 

   EN 

 
                                                 
Budget of Customs 2007, Fiscalis 2007 and EMCS 

ANNEX 1 

The  development  and  maintenance  of  the  Trans-European  Computerised  Networks  for  the 
exchange  of  information  consume  the  largest  part  of  the  budget.  The  remainder  is  spent  on 
activities for improving cooperation between officials. After the May 2004 enlargement, the 
Customs programme budget was increased from €133 million to €165 million and the Fiscalis 
budget from €44 million to €67 million. EMCS has a total budget of €35 million.  

Customs 2007 Programme Budget 

2003 

2004 

2005 

2006 

2007 

Total 

Internal Budget Line 

3.180.000 

6.220.000 

7.830.000 

7.890.000 

7.795.000 

32.915.000 

16.965.000 

22.230.000 

27.230.000 

26.680.000 

27.160.000  120.265.000 

Joint 
Actions 

IT 
Actions 

Total 

24.200.000 

28.450.000 

35.060.000 

34.570.000 

39.495.000  157.235.000 

Total 

1.500.000 

1.550.000 

1.700.000 

1.755.000 

1.810.000 

8.315.000 

External Budget Line 

Fiscalis 2003 – 2007 Programme Budget 

2003 

2004 

2005 

2006 

2007 

Total 

2.750.000 

4.600.000 

4.850.000 

5.850.000 

6.350.000  24.400.000 

6.600.000 

8.350.000 

9.750.000 

9.150.000 

9.000.000  42.850.000 

Joint 
Actions 

IT 
Actions 

Total 

9.350.000 

12.950.000 

14.600.000 

15.000.000 

15.350.000  67.250.000 

EMCS Budget 
A small amount of the total EMCS budget is used for Joint Action type activities. 

2003 

2004 

2005 

2006 

2007 

2008 

Total 

Total 
Budget 

3.000.000  5.500.000  5.400.000  8.300.000  7.300.000  5.500.000  35.000.000 

EN 

12 

   EN 

 
 
 
 
ANNEX 2 

SIMPLIFIED LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL : 

Communication (EC) of the Commission to the European Parliament and the Council 
on Community programme Customs 2013. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

1404 Customs Policy 

3. 

BUDGET LINES 

1.1. Budget lines (operational lines and related technical and administrative assistance 

lines (ex- B..A lines)) including headings : 

(cid:131)  14040X Customs 2013 programme 

(cid:131)  1401040X Customs 2013 programme – Expenditure on administrative 

management   

(cid:131)  The final budgetary structure will be decided at a later stage. 

1.2. Duration of the action and of the financial impact: 

(cid:131)  The period of validity of the legal base runs from 01/01/2008 to 31/12/2013.  

(cid:131)  The payments will continue after 31/12/2013 

1.3. Budgetary characteristics  : 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

14040X  Non-
comp 

1401040 
X 

Non-
comp 

Diff16 

Diff17 

YES 

NO 

YES 

YES 

NO 

YES 

1a  

1a  

16 
17 

Differentiated appropriations. 
Differentiated appropriations. 

EN 

13 

   EN 

 
 
 
 
                                                 
4. 

SUMMARY OF RESOURCES 

1.4. Financial Resources 

1.4.1.  Summary of commitment appropriations (CA) and payment 

appropriations (PA) 

EUR million (to 3 decimal places) 

Section 
no. 

2008 

2009 

2010 

2011 

2012 

2014-
2015 

2013 

Total 

Expenditure type 

Operational expenditure18 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

46.500 

51.000 

54.650 

55.900 

57.200 

58.550 

323.800 

16.575 

38.250 

51.035 

54.300 

56.140 

57.425 

50.075 

323.800 

Administrative expenditure within reference amount1920 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c 

b+c 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

46.500 

51.000 

54.650 

55.900 

57.200 

58.550 

323.800 

16.575 

38.250 

51.035 

54.300 

56.140 

57.425 

50.075 

323.800 

Administrative expenditure not included in reference amount21 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
associated 
not 
included in reference amount 
(NDA) 

costs, 

p.m.  p.m.  p.m.  p.m.  p.m.  p.m.  p.m. 

p.m. 

p.m.  p.m.  p.m.  p.m.  p.m.  p.m.  p.m. 

p.m. 

8.2.5 

d 

8.2.6 

e 

18 
19 
20  

21 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
The administrative expenditure line anticipates the possible externalisation of activities under the 
programme. Budgetary figures will only be available after the completion in 2006 of a feasibility 
study on the topic.  
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
                                                 
Total indicative financial cost of intervention     

46.500 

51.000 

54.650 

55.900 

57.200 

58.550 

323.800 

16.575 

38.250 

51.035 

54.300 

56.140 

57.425 

50.075 

323.800 

TOTAL  CA 
cost 
Resources 

of 

TOTAL  PA 
cost 
Resources 

of 

including 
Human 

including 
Human 

Co-financing details 

N.A.  

a+c
+d+
e 

b+c
+d+
e 

1.4.2.  Compatibility with Financial Programming 

x 

Proposal is compatible with existing financial programming. 

This  Communication  is  compatible  with  the  proposition  of  the  Commission  for 
the  Financial  Perspectives  2007-2013  (COM  (2004)101  final  of  10.2.2004  and 
  – 
COM(2004)487  final  of  14.7.2004.  It  falls  into  the  subheading  1a 
Competitiveness  for  growth  and  employment.  External  actions  relating  to  this 
programme will be financed by the budget lines for the Pre-accession instrument 
(Heading 4 of Financial Perspectives) 

1.4.3.  Financial impact on Revenue 

x 

Proposal has no financial implications on revenue 

2.  CHARACTERISTICS AND OBJECTIVES 

Details  of  the  context  of  the  proposal  are  required 
in  the  Explanatory 
Memorandum.    This  section  of  the  Legislative  Financial  Statement  should  include 
the following specific complementary information: 

2.1. Need to be met in the short or long term 

See explanatory memorandum (Communication) 

2.2. Value-added of Community involvement and coherence of the proposal with 

other financial instruments and possible synergy 

See explanatory memorandum (Communication) 

2.3. Objectives, expected results and related indicators of the proposal in the context 

of the ABM framework 

Objectives and expected results 

EN 

15 

   EN 

 
 
 
 
 
The programmes work at two levels: Joint Actions and IT Systems. Joint Actions 
consist of Joint Action Activities for officials and Common Training Tools while 
IT systems concern the trans-European networks.  

At annual working level the objectives and expected results will be laid down in 
more detail in a regularly updated action plan. 

Indicators 

- Levels of performance of the information systems 

- Indicators to be further determined in the ex-ante evaluation 

2.4. Method of Implementation (indicative) 

Show below the method(s)22 chosen for the implementation of the action. 

X Centralised Management 

X  

Directly by the Commission 

MONITORING AND EVALUATION 

2.5. Monitoring system 

Each year the Commission shall submit to the Management Committee a follow-
up  report  setting  out  the  progress  of  all  the  programme's  activities  in  terms  of 
implementation and results in relation to the annual action plan.  

The administrations shall send the Commission all the information necessary for 
follow-up reports to be drawn up as efficiently as possible. 

2.6. Evaluation 

2.6.1.  Impact assessment 

An impact assessement will be carried out, more details will be included 
in the financial fiche of the Decision proposal. As the new programme is a 
continuation of the Customs 2007 programme, the impact assessment will 
be based on the results of the Customs 2007 Interim Evaluation.  

2.6.2.  Measures taken following an intermediate evaluation (lessons learned 

from similar experiences in the past) 

The financial fiche of the Decision proposal will have a description of the 
key findings and an explanation if and how the  lessons learned from  the 

22 

If more than one method is indicated please provide additional details in the "Relevant comments" 
section of this point. 

EN 

16 

   EN 

 
                                                 
currently  ongoing  Customs  Interim  Evaluation  have  been  integrated  into 
the proposal.  

2.6.3.  Terms and frequency of future evaluation 

Mid-term  and  final  evaluations  of  the  programme  shall  be  carried  out 
under the Commission's responsibility using the follow-up reports and the 
reports drawn up by the participating countries.  

— the mid-term evaluation shall focus on the programme's efficiency and 
effectiveness in respect to implementation and initial results, as well as on 
the relevance of its initial objectives;  

— the final evaluation shall assess the effectiveness and efficiency of the 
programme's activities. 

The  Commission  shall  present  to  the  European  Parliament  and  the 
Council: 

(a)  by  31  December  2010,  a  mid-term  evaluation  report  on  the 
programme's 
a 
efficiency 
the  programme, 
the  desirability  of  continuing 
communication  on 
accompanied, where relevant, by a suitable proposal; 

effectiveness, 

relevance, 

and 

and 

(b)  by  30  September  2014,  a  final  evaluation  report  on  the  programme's 
effectiveness and efficiency. 

EN 

17 

   EN 

 
3.  DETAILS OF RESOURCES 

3.1. Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Year 2008 

Year 2009 

Year 2010 

Year 2011 

Year 2012 

Year 2013  

TOTAL 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

of 
(Headings 
Objectives,  actions 
and outputs should 
be provided) 

OPERATIONAL 
OBJECTIVE  No.1 
23……… 

   Action 
Actions. 

1Joint 

 - Joint Actions 

7.500 

7.500 

7.700 

7.700 

7.800 

7.800 

46.000 

1.500 

1.500 

1.750 

2.000 

2.200 

2.450 

11.400 

 - Common Training 
Tools 

Action 
Actions. 

2 

IT 

 - CCN CSI 

7.000 

7.500 

7.700 

8.000 

8.000 

8.000 

46.200 

 - Transit 

7.500 

7.500 

7.000 

7.000 

6.000 

6.000 

41.000 

 - Tariff 

6.000 

6.000 

6.000 

6.000 

6.000 

6.000 

36.000 

 -  Security  Aspects 
for 
Customs 
(electronic customs) 

5.000 

6.000 

6.500 

7.200 

7.200 

6.800 

38.700 

 - 
customs 

Electronic 

12.000 

15.000 

18.000 

18.000 

20.000 

21.500 

104.500 

TOTAL COST 

46.500 

51.000 

54.650 

55.900 

57.200 

58.550 

323.800 

23 

As described under Section 5.3. 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
ANNEX 3 

SIMPLIFIED LEGISLATIVE FINANCIAL STATEMENT 

4.  NAME OF THE PROPOSAL : 

Communication (EC) of the Commission to the European Parliament and the Council 
on the Community Programme Fiscalis 2013. 

5.  ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

1405 Taxation Policy  

6.  BUDGET LINES 

6.1. Budget lines (operational lines and related technical and administrative assistance 

lines (ex- B..A lines)) including headings : 

(cid:131)  14050X Fiscalis 2013 programme 

(cid:131)  1401040X Fiscalis 2013 programme – Expenditure on administrative 

management   

(cid:131)  The final budgetary structure will be decided at a later stage. 

6.2. Duration of the action and of the financial impact: 

(cid:131)  The period of validity of the legal base runs from 01/01/2008 to 31/12/2013.  

(cid:131)  The payments will continue after 31/12/2013 

6.3. Budgetary characteristics (add rows if necessary) : 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

14050X  Non-
comp 

1401040 
X 

Non-
comp 

Diff24 

Diff25 

YES 

NO 

YES 

YES 

NO 

YES 

1a  

1a  

24 
25 

Differentiated appropriations. 
Differentiated appropriations. 

EN 

19 

   EN 

 
 
 
 
                                                 
7.  SUMMARY OF RESOURCES 

7.1. Financial Resources 

7.1.1.  Summary of commitment appropriations (CA) and payment 

appropriations (PA) 

Expenditure type 

Section 
no. 

Operational expenditure26 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

EUR million (to 3 decimal places) 

2008 

2009 

2010 

2011 

2012 

2013 

2014-
2015 

Total 

22.900 

27.450 

30.300 

31.100 

31.100 

32.450 

175.300 

9.520 

20.065 

27.120 

29.825 

30.900 

31.465 

26.405 

175.300 

Administrative expenditure within reference amount2728 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c 

b+c 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

22.900 

27.450 

30.300 

31.100 

31.100 

32.450 

175.300 

9.520 

20.065 

27.120 

29.825 

30.900 

31.465 

26.405 

175.300 

Administrative expenditure not included in reference amount29 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
associated 
not 
included in reference amount 
(NDA) 

costs, 

p.m. 

p.m. 

8.2.5 

d 

8.2.6 

e 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

    Total indicative financial cost of intervention     

26 
27 
28  

29 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
The administrative expenditure line anticipates the possible externalisation of activities under the 
programme. Budgetary figures will only be available after the completion in 2006 of a feasibility 
study on the topic.  
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

20 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
                                                 
TOTAL  CA 
cost 
Resources 

of 

TOTAL  PA 
cost 
Resources 

of 

including 
Human 

including 
Human 

a+c
+d+
e 

b+c
+d+
e 

22.900 

27.450 

30.300 

31.100 

31.100 

32.450 

175.300 

9.520 

20.065 

27.120 

29.825 

30.900 

31.465 

26.405 

175.300 

Co-financing details 

n.a 

7.1.2.  Compatibility with Financial Programming 

x 

Proposal is compatible with existing financial programming. 

This  Communication  is  compatible  with  the  proposition  of  the  Commission  for 
the  Financial  Perspectives  2007-2013  (COM  (2004)101  final  of  10.2.2004  and 
COM(2004)487  final  of  14.7.2004.  It  falls  into  the  subheading  1a 
  – 
Competitiveness  for  growth  and  employment.  External  actions  relating  to  this 
programme will be financed by the budget lines for the Pre-accession instrument 
(Heading 4 of Financial Perspectives)  

7.1.3.  Financial impact on Revenue 

x 

Proposal has no financial implications on revenue 

8.  CHARACTERISTICS AND OBJECTIVES 

Details  of  the  context  of  the  proposal  are  required 
in  the  Explanatory 
Memorandum.    This  section  of  the  Legislative  Financial  Statement  should  include 
the following specific complementary information: 

8.1. Need to be met in the short or long term 

See explanatory memorandum (Communication) 

8.2. Value-added of Community involvement and coherence of the proposal with 

other financial instruments and possible synergy 

See explanatory memorandum (Communication) 

EN 

21 

   EN 

 
 
 
 
 
 
 
 
 
8.3. Objectives, expected results and related indicators of the proposal in the context 

of the ABM framework 

Objectives and expected results 

The programmes work at two levels: Joint Actions and IT Systems. Joint Actions 
consist of Joint Action Activities for officials and Common Training Tools while 
IT systems concern the trans-European networks.  

At annual working level the objectives and expected results will be laid down in 
more detail in a regularly updated action plan. 

Indicators 

- Levels of performance of the information systems 

- Indicators to be further determined in the ex-ante evaluation 

8.4. Method of Implementation (indicative) 

Show below the method(s)30 chosen for the implementation of the action. 

X Centralised Management 

Directly by the Commission 

MONITORING AND EVALUATION 

8.5. Monitoring system 

Each year the Commission shall submit to the Management Committee a follow-
up  report  setting  out  the  progress  of  all  the  programme's  activities  in  terms  of 
implementation and results in relation to the annual action plan.   

The administrations shall send the Commission all the information necessary for 
follow-up reports to be drawn up as efficiently as possible. 

8.6. Evaluation 

8.6.1.  Impact assessment 

An impact assessment will be carried out, more details will be included in 
the  financial  fiche  of  the  Decision proposal.  As  the  new  programme  is  a 
continuation of the Fiscalis 2007 programme, the impact assessment will 
be based on the results of the Fiscalis 2007 Interim Evaluation. 

30 

If more than one method is indicated please provide additional details in the "Relevant comments" 
section of this point. 

EN 

22 

   EN 

 
   
                                                 
8.6.2.  Measures taken following an intermediate evaluation (lessons learned 

from similar experiences in the past) 

The financial fiche of the Decision proposal will have a description of the 
key findings and an explanation if and how the  lessons learned from  the 
currently  ongoing  Fiscalis  Interim  Evaluation  have  been  integrated  into 
the proposal.  

8.6.3.  Terms and frequency of future evaluation 

Mid-term  and  final  evaluations  of  the  programme  shall  be  carried  out 
under the Commission's responsibility using the follow-up reports and the 
reports drawn up by the participating countries.  

— the mid-term evaluation shall focus on the programme's efficiency and 
effectiveness in respect to implementation and initial results, as well as the 
relevance of its initial objectives;  

— the final evaluation shall assess the effectiveness and efficiency of the 
programme's activities. 

The  Commission  shall  present  to  the  European  Parliament  and  the 
Council: 

(a)  by  31  December  2010,  a  mid-term  evaluation  report  on  the 
programme's effectiveness, efficiency and relevance and a communication 
on  the  desirability  of  continuing  the  programme,  accompanied,  where 
relevant, by a suitable proposal; 

(b)  by  30  September  2014,  a  final  evaluation  report  on  the  programme's 
effectiveness and efficiency. 

EN 

23 

   EN 

 
9.  DETAILS OF RESOURCES 

9.1. Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Year 2008 

Year 2009 

Year 2010 

Year 2011 

Year 2012 

Year 2013  

TOTAL 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

Total cost 

(Headings  of 
Objectives, 
actions  and 
outputs 
should 
provided) 

be 

OPERATIO
NAL 
OBJECTIVE 
No.1 
31……… 

   Action  1  – 
Joint Actions 

 - 
Actions 

Joint 

6.500 

6.500 

6.500 

6.500 

6.500 

6.500 

39.000 

 -  Common 
Training 
Tools 

Action 2 – IT 
Actions. 

 - CCN CSI 

Taxation 

- 
Systems 
(VIES) 

Excise 

- 
Systems 
(EMCS) 

IT 

-  New 
Development
s 

TOTAL 
COST 

400 

450 

600 

600 

600 

650 

3.300 

7.000 

5.000 

7.500 

5.000 

7.700 

5.000 

8.000 

5.000 

8.000 

5.000 

8.000 

5.300 

46.200 

30.300 

3.000 

4.500 

4.000 

4.000 

4.000 

19.500 

4.000 

5.000 

6.000 

7.000 

7.000 

8.000 

37.000 

22.900 

27.450 

30.300 

31.100 

31.100 

32.450 

175.300 

31 

As described under Section 5.3. 

EN 

24 

   EN