Proposal for a Council Decision on a Union position within the EU-Japan Joint Customs Cooperation Committee concerning the mutual recognition of Authorised Economic Operator programmes in the European Union and in Japan
Date: 2010-02-19
Institutions: European Commission
Subjects: Japan, administrative cooperation, cooperation agreement (EU), customs cooperation, data protection, harmonisation of standards, personal data

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EUROPEAN COMMISSION 

Brussels, 19.2.2010 
COM(2010)55 final 

2010/0037 (NLE) 

Proposal for a 

COUNCIL DECISION 

on a Union position within the EU-Japan Joint Customs Cooperation Committee 
concerning the mutual recognition of Authorised Economic Operator programmes in 
the European Union and in Japan  

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

(1) 

(2) 

EU-Japan relations in the area of customs are based on the Agreement on Co-
operation  and  Mutual  Administrative  Assistance  in  Customs  Matters 
(CCMAAA)1 that entered into force on 1 February 2008.  

According to the CCMAAA, customs co-operation covers all matters relating 
to  the  application  of  customs  legislation.  The  CCMAAA  also  calls  for  the 
Union  and  Japan  to  make  co-operative  efforts  in  order  to  develop  trade 
facilitation  actions  in  the  field  of  customs  in  accordance  with  international 
standards2. 

(3)  Mutual  recognition  of  Authorised  Economic  Operator  (AEO)  programmes 
and  security  measures  both  enhances  end-to-end  supply  chain  security,  and 
facilitates  trade.  It  consolidates  internationally  the  approach  agreed  in  the 
WCO  SAFE  Framework  of  Standards.  It  also  addresses  the  concern  of  the 
business community in Europe and around the world to avoid proliferation of 
requirements and to standardise customs security procedures. 

(4) 

(5) 

At  the  first  meeting  of  the  Joint  Customs  Cooperation  Committee  (JCCC), 
established  by  the  CCMAAA,  on  11  February  2008,  the  EU  and  Japan 
confirmed  that  such  mutual  recognition  between  the  EU  and  Japan  is  a 
priority. 

The second meeting of the JCCC, on 17 September 2009, confirmed that the 
AEO legislations in the EU and in Japan are equivalent and are implemented 
in a compatible manner. Agreement was also found on the initial benefits that 
can be provided via mutual recognition. Thus the JCCC invited the European 
Commission  and  Customs  and  Tariff  Bureau  of  Japan  to  develop  by  early 
2010 a proposal for a JCCC Decision which achieves this mutual recognition 
and provides equivalent benefits to each other's operators. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

(1)  Member  States  were  consulted  in  the  framework  of  the  EU-Japan  Joint 
Customs Cooperation Committee, and the Customs Union Group (Legislation 
and Policy) of the Council of the European Union. 

(2) 

There is no need for an impact assessment insofar as the Decision implements 
the CCMAAA and does not modify its substance. 

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OJ L 62 of 6 March 2008, page 24 
Article 4 of CCMAAA. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

(1) 

(2) 

(3) 

The  Council  is  asked  to  adopt  a  Union  position  on  a  draft  decision  of  the 
JCCC based on Article 207 (4) first subparagraph, in conjunction with Article 
218(9) of the Treaty on the Functioning of the European Union. 

The legal basis for the draft decision of the JCCC is laid down in Article 21 
(2) (b) of the CCMAAA.  

The  proposal  falls  under  the  common  commercial  policy,  exclusive 
competence of the Union. The subsidiarity principle therefore does not apply.  

4. 

BUDGETARY IMPLICATION 

The proposal has no direct implication for the Union budget. 

5. 

DATA PROTECTION 

(1) 

(2) 

(3) 

The Japanese data protection regime is adequate in the sense of Article 9 of 
Regulation  45/2001/EC.  This  regime  is  spelt  out  in  the  Japanese  Customs 
Law (article 108-2), in the Law for International Assistance in Investigation 
and other related matters (articles 1 and 3), the National Public Service Law 
(article  100),  the  Act  on  the  Protection  of  Personal  Information  Held  by 
Administrative Organs (article 8) and the Act on Access to Information Held 
by Administrative Organs (article 5). 

The provisions in Section IV (5) and (6) of the draft JCCC decision serve to 
ensure  undertakings  to  protect  personal  data  by  the  receiving  customs 
administration and to introduce a purpose-restriction. 

Therefore processing personal data in exchanging information with Japan on 
AEOs under Section IV of the draft JCCC decision is in line with the basic 
principles  in  the  sense  of  Article  25  of  Directive  95/46/EC,  according  to 
which data must be fairly and lawfully processed; processed for limited and 
explicit  purposes;  adequate,  relevant  and  not  excessive;  accurate;  not  kept 
longer than necessary; processed in accordance with the data subject's rights; 
secure; and not transferred to third parties without adequate precautions. 

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2010/0037 (NLE) 

Proposal for a 

COUNCIL DECISION 

of […] 

on a Union position within the EU-Japan Joint Customs Cooperation Committee 
concerning the mutual recognition of Authorised Economic Operators programmes in 
the European Union and in Japan. 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4) first subparagraph, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

Article 4(3) of the Agreement on Co-operation and Mutual Administrative Assistance 
in Customs Matters between the European Community and Japan (CCMAAA)3 calls 
for developing customs co-operation in order to facilitate trade. 

(2)  Mutual  recognition  of  Authorised  Economic  Operator  (AEO)  programmes  enhances 
end-to-end supply chain security and helps to increase international trade flows.  

(3) 

(4) 

(5) 

It is therefore appropriate, for the implementation of the Agreement and with a view to 
facilitating the work of economic operators and customs administrations, to establish 
this mutual recognition. 

This  mutual  recognition  is  to  be  established  by  a  decision  of  the  Joint  Customs 
Cooperation Committee (JCCC) established by the CCMAAA. 

The Union should therefore take position in the Joint Customs Cooperation Committee 
as set out in the attached draft Decision, 

HAS ADOPTED THIS DECISION: 

Article 1 

The  position  to  be  taken  by  the  Union  within  the  Joint  Customs  Cooperation  Committee 
established  by  the  Agreement  between  the  European  Community  and  the  Government  of 
Japan on cooperation and mutual administrative assistance in customs matters, with regard to 
the  mutual  recognition  of  Authorised  Economic  Operators  programmes  in  the  European 
Union  and  in  Japan  is  that  set  out  in  the  attached  draft  decision  of  the  Joint  Customs 
Cooperation Committee. 

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OJ L 62 of 6 March 2008, page 24. 

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Article 2 

The decision of the Joint Customs Cooperation Committee shall be published in the Official 
Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

Proposal for a 

DECISION OF THE JOINT CUSTOMS CO-OPERATION COMMITTEE 

No..../2009  

REGARDING MUTUAL RECOGNITION OF AUTHORISED ECONOMIC 
OPERATORS PROGRAMMES IN THE EUROPEAN UNION AND IN JAPAN 

THE  JOINT  CUSTOMS  CO-OPERATION  COMMITTEE  (hereinafter  referred  to  as  ‘the 
JCCC’), 

Having  regard  to  the  Agreement  between  the  European  Community  and  the  Government  of 
Japan on Co-operation and Mutual Administrative Assistance in Customs Matters, signed on 30 
January 2008 (hereinafter referred to as ‘the CCMAAA’), and in particular Article 21 thereof; 

Considering  that  a  joint  evaluation  has  confirmed  that  Authorised  Economic  Operators 
(hereinafter referred to as ‘AEO’) programmes in the European Union (hereinafter referred to as 
‘the  Union’)  and  in  Japan  are  security  and  compliance  initiatives  and  has  revealed  that  their 
qualification standards for membership are compatible and lead to equivalent results; 

Considering that the programmes apply internationally recognised security standards advocated 
by the SAFE Framework of Standards adopted by the World Customs Organization (hereinafter 
referred to as ‘the SAFE Framework’); 

Acknowledging the special nature of the legislation and management of each programme; 

Considering that, in accordance with the CCMAAA, the Union and Japan are to develop customs 
co-operation  to  facilitate  trade  and  that  customs  security  and  safety,  and  facilitation  of  the 
international  trade  supply  chain,  can  be  significantly  enhanced  by  mutual  recognition  of  their 
AEO programmes; and 

Considering that mutual recognition allows the Union and Japan to provide facilitative benefits 
to operators who have invested in supply chain security and have been certified by their AEO 
programmes, 

HAS DECIDED AS FOLLOWS: 

I 

Mutual Recognition and Responsibility for Implementation 

(1)  The  AEO  programmes  of  the  Union  and  Japan  are  hereby  mutually  recognised  to  be 
compatible and equivalent and the corresponding AEO statuses granted are mutually accepted. 

(2) The customs authorities defined in Article 1(c) of the CCMAAA (hereinafter referred to as 
‘customs authorities’) are responsible for implementation of this Decision. 

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(3) The AEO programmes concerned are: 

(a)  the  European  Union  Authorised  Economic  Operator  programme  (covering  the  ‘security 
and  safety’  AEO  certificate  and  the  ‘customs  simplifications,  security  and  safety’  AEO 
certificates) 

(Regulation  (EC)  No  2913/92  and  Regulation  (EC)  No  2454/93,  as  amended  by  Regulation 
(EC) No 648/2005 and Title IIA of Regulation (EC) No 1875/2006); and  

(b) the Japanese Authorised Economic Operators programme (Customs Law). 

II 

Compatibility 

(1) The customs authorities maintain the consistency between the programmes and ensure that 
standards applied to each programme remain compatible with respect to the following matters: 

(a) application process for granting AEO status; 

(b) assessment of applications; and  

(c) granting and monitoring AEO status. 

(2) The customs authorities ensure that the programmes operate within the SAFE Framework. 

III 

Benefits 

(1)  Each  customs  authority  provides  comparable  benefits  to  economic  operators  holding  AEO 
status under the other customs authority’s programme. 

These include, in particular: 

(a) taking the AEO status of an operator authorised by the other customs authority into account 
favourably in its risk assessment to reduce inspections or controls and in other security-related 
measures; and 

(b) endeavouring to establish a joint business continuity mechanism to respond to disruptions 
in trade flows due to increases in security alert levels, border closures and/or natural disasters, 
hazardous  emergencies  or  other  major  incidents,  where  priority  cargos  shipped  by  AEOs 
could be facilitated and expedited to the extent possible by the Customs Authorities. 

(2)  Each  customs  authority  may  also  provide  further  benefits  with  a  view  to  facilitating  trade 
following the review process referred to in paragraph 2 of Part V of this Decision.  

(3) Each customs authority retains the authority to suspend the benefits provided to members of 
the  other  customs  authority’s  programme  under  this  Decision.  Such  suspension  of  benefits  by 
one customs authority is promptly communicated and reasoned to the other customs authority for 
consultation. 

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(4)  Each  customs  authority  reports  irregularities  involving  economic  operators  holding  AEO 
status under the other customs authority’s programme to the other customs authority in order to 
ensure immediate analysis of the appropriateness of the benefits and status granted by the other 
customs authority. 

IV 

Information Exchange and Communication 

(1)  The  customs  authorities  enhance  communication  in  order  to  implement  this  Decision 
effectively.  They  exchange  information  and  foster  communication  on  their  programmes  in 
particular by: 

(a) providing updates on operation and development of their programmes in a timely manner; 

(b) engaging in mutually beneficial exchanges of information regarding supply chain security; 
and 

(c)  ensuring  effective  inter-agency  communication  between  the  European  Commission 
Directorate-General for Taxation and Customs Union and the International Intelligence Office 
of the Customs Administration of Japan to enhance risk management practices with respect to 
supply chain security on the part of the members of the programmes. 

(2)  Exchanges  of  information  are  conducted  in  accordance  with  the  CCMAAA  in  electronic 
format. 

(3)  Information  and  related  data,  notably  on  members  of  the  programmes,  are  exchanged  in  a 
systematic manner by electronic means. 

(4)  Details  to  be  exchanged  on  economic  operators  authorised  by  the  AEO  programmes 
include: 

(a) the name of the economic operator holding AEO status;  

(b) the address of the economic operator concerned; 

(c) the status of the economic operator concerned; 

(d) the validation or authorisation date;  

(e) suspensions and revocations; 

(f) the unique authorisation number (e.g. EORI or AEO numbers); and 

(g) other details that may be established between the customs authorities. 

(5)  The  customs  authorities  guarantee  data  protection  in  accordance  with  the  CCMAAA,  in 
particular Article 16 thereof. 

(6) The data exchanged are used strictly for the purposes of implementing this Decision. 

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V 

Consultation and Review 

(1)  All  issues  related  to  implementation  of  this  Decision  are  to  be  settled  by  consultations 
between the customs authorities in the framework of the JCCC.  

(2)  The  JCCC  reviews  implementation  of  this  Decision  regularly.  This  review  process  may 
include, in particular: 

(a)  joint  verifications  to  identify  strengths  and  weaknesses  in  implementing  mutual 
recognition; 

(b) exchanges of views on details to be exchanged and benefits, including any future benefit, 
to be granted to operators in accordance with paragraph 2 of Part III of this Decision;  

(c)  exchanges  of  views  on  security  provisions  such  as  protocols  to  be  followed  during  and 
after a serious security incident (business resumption) or when conditions merit suspension of 
mutual recognition; 

(d) reviews of conditions for suspension of the benefits referred to in paragraph 3 of Part III of 
this Decision; and 

(e) comprehensive reviews of this Decision. 

(3) This Decision may be modified by a decision of the JCCC. 

VI 

General Acknowledgments 

(1) This Decision implements the existing provisions of the CCMAAA and does not constitute a 
new international agreement. 

(2)  All  activities  of  each  customs  authority  pursuant  to  this  Decision  are  carried  out  in 
accordance with the respective laws and regulations of the Union and Japan and the applicable 
international agreements to which they are a party. 

(3) The contents of this Decision are without prejudice to customs authorities granting assistance 
to each other. 

VII 

Commencement, Suspension and Termination 

(1) The co-operation under this Decision commences on …... 

(2)  Either  customs  authority  may  suspend  co-operation  under  this  Decision  at  any  time  but 
provides at least thirty (30) days written notice thereof. 

(3) The co-operation under this Decision may be terminated by a decision of the JCCC.  

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For the EU-Japan Joint Customs Co-operation Committee  

_________________  ________________ 

(The two chairpersons)  

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