Special Report No 1/2010 ‘Are simplified customs procedures for imports effectively controlled?’
Date: 2010-03-25
Institutions: European Court of Auditors
Subjects: audit, customs inspection, customs regulations, electronic government, import (EU), international standard

EUROPEAN 
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ARE SIMPLIFIED CUSTOMS
PROCEDURES FOR IMPORTS
EFFECTIVELY CONTROLLED?

 
 
 
 
Special Report No 1 

 2010

ARE SIMPLIFIED CUSTOMS 
PROCEDURES FOR 
IMPORTS EFFECTIVELY 
CONTROLLED?

(pursuant to Article 287(4), second subparagraph, TFEU)

EUROPEAN COURT OF AUDITORS

EUROPEAN COURT OF AUDITORS 
12, rue Alcide De Gasperi
1615 Luxembourg
LUXEMBOURG

Tel. +352 4398-1
Fax +352 4398-46410
E-mail: euraud@eca.europa.eu
Internet: http://www.eca.europa.eu

Special Report No 1 

 2010

A great deal of additional information on the European Union is available on the Internet.

It can be accessed through the Europa server (http://europa.eu).

Cataloguing data can be found at the end of this publication

Luxembourg: Publications Office of the European Union, 2010

ISBN 978-92-9207-682-5

doi:10.2865/65396

© European Union, 2010

Reproduction is authorised provided the source is acknowledged.

Printed in Luxembourg

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

CONTENTS

3

Paragraph

I-VII 

1-12 

ABBREVIATIONS

GLOSSARY OF TERMS

EXECUTIVE SUMMARY

INTRODUCTION

13–20 

AUDIT SCOPE AND APPROACH

13-14 

15-20 

21-78 

21-38 

22-26 

27-31 

32-33 

34-38 

39-78 

40-62 

63-78 

79-91 

81-84  

85-91 

MAIN AUDIT OBJECTIVE

AUDIT APPROACH AND METHODOLOGY

OBSERVATIONS

 HAS THE COMMISSION DEVELOPED A SOUND APPROACH FOR CONTROLS ON SIMPLIFIED 
PROCEDURES, TAKING INTO ACCOUNT INTERNATIONAL BEST PRACTICES, AND DID IT 
MONITOR THE CORRECT APPLICATION OF SIMPLIFIED PROCEDURES AND THE CONTROLS 
THEREON?

 THE INITIAL REGULATORY FRAMEWORK WAS INSUFFICIENT BUT WAS IMPROVED 
FROM THE BEGINNING OF 2009

MANDATORY APPLICATION OF AUTOMATED RISK ANALYSIS NOT YET IMPLEMENTED

GUIDELINES FOR EX-POST AUDITS ARE NOT YET COMPLETE

 DEDICATED INSPECTIONS ON SIMPLIFIED PROCEDURES BY THE COMMISSION TOOK 
PLACE FOR THE FIRST TIME IN 2008

 DO MEMBER STATES USE A SOUND AND STANDARDISED APPROACH FOR CONTROLS ON 
SIMPLIFIED PROCEDURES AND ARE THESE CONTROLS EFFECTIVE?

 MEMBER STATES FOLLOWED THEIR OWN APPROACHES WITH DIFFERENCES IN 
CONTROLS AT EACH STAGE

INEFFECTIVE CONTROLS IN THE MEMBER STATES

CONCLUSIONS AND RECOMMENDATIONS

 HAS THE COMMISSION DEVELOPED A SOUND APPROACH FOR CONTROLS ON SIMPLIFIED 
PROCEDURES AND DID IT MONITOR THE CORRECT APPLICATION OF SIMPLIFIED 
PROCEDURES AND THE CONTROLS THEREON?

 DO MEMBER STATES USE A SOUND AND STANDARDISED APPROACH FOR CONTROLS ON 
SIMPLIFIED PROCEDURES AND ARE THESE CONTROLS EFFECTIVE?

Annex I 
Annex II 
Annex III 
Annex IV 

Overview on the characteristics of simplified procedures
ECA-Control Model for simplified procedures
Overview of the observations for the nine audited Member States
Overview on errors in the samples

REPLY OF THE COMMISSION

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
 
 
 
Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

ABBREVIATIONS

5

AEO: Authorised Economic Operator

CCIP: Customs Code Implementing Provisions

CRMF: Common Risk Management Framework

DG BUDG: Directorate-General for Budget

DG TAXUD: Directorate-General for Taxation and the Customs Union 

EU: European Union

LCP: Local clearance procedure

SDP: Simplified declaration procedure

TOR: Traditional Own Resources

WCO: World Customs Organisation

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

GLOSSARY OF TERMS  

6

Automated risk management/risk analysis: the systematic identification of risk and implemen-
tation of all measures necessary to limit exposure to risk using automated data processing tech-
niques. This includes activities such as collecting data and information, analysing and assessing risk, 
prescribing and taking action and regular monitoring and review of the process and its outcomes, 
based on international, EU and national sources and strategies.

Certificate of origin: a document required when claiming a preferential duty rate which should 
be completed by the exporter of the goods (e.g. EUR.1, Form A, invoice declaration).

Check before release: a physical or documentary check before the goods are made available to 
the trader for the determined purpose of the respective customs procedure.

Controls/ customs controls: specific acts performed by customs authorities in order to ensure 
the correct application of customs rules; such acts may include examining goods, verifying declar-
ation data and the existence and authenticity of electronic or written documents, examining the 
accounts of undertakings and other records, inspecting means of transport, inspecting luggage 
and other similar acts.

Customs clearance: the process of fulfilling customs formalities so that the applicant can have 
the goods at his disposal.

Customs procedure: applying one of the following procedures: release for free circulation; transit; 
customs warehousing; inward processing; processing under customs control; temporary admission; 
outward processing; export.

Declaration/customs declaration: the act whereby a person indicates a wish to place goods under 
a given customs procedure.

Documentary check: a control of the correctness, completeness and validity of information en-
tered on the customs declaration (e.g. description of goods, value, quantity) or other documents 
(e.g. import licences, certificates of origin).

Ex-post audit: controlling traders through examination of their accounts, records and systems in 
order to ensure compliance with customs rules and evaluate the risks linked to their business.

Free circulation: the status of goods imported from third countries which have undergone all 
import formalities in order to be able to be sold or consumed on the EU market.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

7

Import: application of the customs procedure release for free circulation after which goods can be 
sold or consumed on the EU market.

Import licence: a document issued by the competent authorities of a Member State authorising the 
import of certain goods which are subject to restriction into the EU. Each licence specifies the volume 
of imports allowed, and the total volume imported should not exceed this maximum amount. 

Physical check: an examination of goods including detailed counting and taking of samples to 
check whether they match the customs declaration accompanying the goods.

Post-event: after release of the goods.

Pre-authorisation audit/pre-audit: controlling traders by means of an examination of their ac -
counts, records and systems before issuing an authorisation to use a customs procedure. The ob-
jective is to test the trader’s compliance with the conditions to be able to use the procedure and 
to evaluate the risk linked to his business.

Presentation of goods to customs:  the  notification  to  the  customs  authorities  of  the  arrival 
of  goods  at  the  customs  office  or  at  any  other  place  designated  or  approved  by  the  customs 
 authorities.

Reconciliation check: a check between simplified declaration (SDP) or entry in the trader’s records 
(LCP) and the supplementary declaration. The check can include a substantive check of individual 
items (accuracy) and/or ensure that all simplified transactions are included in a supplementary 
declaration (completeness).

Release of goods: the act whereby the customs authorities make goods available for the purposes 
stipulated by the customs procedure under which they are placed.

Risk: the likelihood of an event occurring which prevents the correct application of EU or national 
measures, compromises the financial interests of the EU and its Member States, or poses a threat 
to the EU’s security and safety, to public health, to the environment or to consumers.

Risk profile: a combination of risk criteria and control areas (e.g. type of goods, countries of origin) 
which indicates the existence of risk and leads to a proposal to carry out a control measure.

Surveillance document: products under EU surveillance may be imported only on production of 
a surveillance document issued by the competent authorities of a Member State.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

8

EXECUTIVE 
SUMMARY

IV.
The  Cour t found th at:

- 

- 

- 

- 

- 

t h e   C o m m i s s i o n   h a s   t a k e n   i n t o   a c -
c o u n t   i n t e r n a t i o n a l   s t a n d a r d s   a n d 
put in place an appropriate regulator y 
f r a m e wo r k   fo r   s i m p l i f i e d   p ro c e d u re s, 
but n ot  before t he end  of 20 0 8,

t h e   C o m m i s s i o n   h a s   d e v e l o p e d   a n 
E U -w i d e   a u to m ate d   r i s k   m a n a g e m e nt 
s y s t e m .   W h i l e   t h e   s y s t e m   a l l o w s   f o r 
a n   a u t o m a t e d   e x c h a n g e   o f   R i s k   I n-
for mat ion   For m s  ( RIF),   it  d oes   no t  yet 
i n c l u d e   r i s k   p r o f i l e s   c o v e r i n g   TO R   o r 
th e common  t rade  polic y,

the obligation to apply automated risk 
analysis in the framework of simplified 
procedures will only apply from 1 Janu-
ar y 2011,

t h e   C o m m i s s i o n   c a r r i e d   o u t   s p e c i f i c 
i n s p e c t i o n s   o n   s i m p l i f i e d   p ro c e d u re s 
fo r   i m p o r t s   fo r   t h e   f i r s t   t i m e   i n   2 0 0 8 
and enhanced its monitoring ac tivities 
in  20 09 , an d

a   s t a n d a r d i s e d   a p p r o a c h   f o r   e x - p o s t 
a u d i t s   o n   s i m p l i f i e d   p r o c e d u r e s   i s 
n o t   y e t   a p p l i e d   t h r o u g h o u t   t h e   E U , 
bec ause th e a c t ivities of t he Comm is-
s i o n   t o   a c h i e v e   i t   h a v e   n o t   y e t   b e e n 
completed.

I.
Tr a d e r s   w h o   a r e   a u t h o r i s e d   t o   u s e   s i m-
p l i f i e d   c u s t o m s   p r o c e d u r e s   f o r   i m p o r t s 
b e n e f i t   f r o m   a n   a c c e l e r a t e d   c u s t o m s 
c l e a r a n c e   p r o c e s s .   C u s t o m s   p l a c e   r e l i-
a n c e   o n   t h e   c o r r e c t n e s s   o f   t h e i r   i m p o r t 
declarations and car r y out fewer controls 
b e f o r e   r e l e a s e .   T h i s   s h o u l d   b e   c o m p e n-
s a t e d   b y   p r e - a u t h o r i s a t i o n   a n d   e x - p o s t 
audits. The  pro cedu res are l o ng - st an di ng 
a n d   w i d e l y   u s e d   i n   t h e   E U ;   i n   2 0 0 8 ,   m o re 
t h a n   t w o   t h i r d s   o f   a l l   E U   c u s t o m s   d e c -
l a r a t i o n s   f o r   i m p o r t s   w e r e   m a d e   u s i n g 
simplified p ro cedu res.

II.
T h e s e   p r o c e d u r e s   a r e   a n   i m p o r t a n t 
e l e m e n t   o f   E U   t r a d e   f a c i l i t a t i o n   p o l i c y, 
w h i c h   w a s   f u r t h e r   d e v e l o p e d   i n   2 0 0 8 
t h ro u g h   t h e   i m p l e m e n t a t i o n   o f   t h e   c o n-
c e p t   o f   t h e   Au t h o r i s e d   E c o n o m i c   O p e r a-
to r   (A E O) ,   a   p r i v i l e g e d   u s e r   o f   s i m p l i f i e d 
c u s t o m s   p r o c e d u r e s ,   b y   R e g u l a t i o n   ( E C ) 
No  1192/2008, and by the adoption of the 
M o d e r n i z e d   C u s t o m s   C o d e,   w h i c h   w i l l   b e 
applica bl e by 20 13.

III.
T h e   C o u r t ’s   a u d i t   a s s e s s e s   w h e t h e r   t h e 
t wo   m a i n   s i m p l i f i e d   c u s to m s   p ro ce d u re s 
fo r   i m p o r t s   a r e   e f fe c t i v e l y   c o n t r o l l e d   i n 
o r d e r   t o   p r o v i d e   r e a s o n a b l e   a s s u r a n c e 
f o r   t h e   c o r r e c t   c o l l e c t i o n   o f   Tr a d i t i o n a l 
O w n   R e s o u r c e s   ( T O R )   a n d   h e l p   e n s u r e 
t h at   t ra d e r s   co m p l y   w i t h   t h e   o b l i g at i o n s 
d e r i v i n g   f ro m   t h e   c o m m o n   t r a d e   p o l i c y. 
The Cour t considers whether the Commis-
sion has taken into account inter national 
b e s t   p r a c t i c e   f o r   t h e   d e v e l o p m e n t   o f   a 
s o u n d   c o n t r o l   a p p r o a c h   f o r   s i m p l i f i e d 
procedures and whether it monitors their 
c o r r e c t   a p p l i c a t i o n   t h r o u g h o u t   t h e   E U. 
Th e   a u d i t   a l s o   a s s e s s e s   w h e t h e r   M e m b e r 
S t ate s   c a r r y   o u t   e f fe c t i ve   co nt ro l s   b a s e d 
on such an ap proac h.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

9

EXECUTIVE 
SUMMARY

V.
T h e   C o u r t   f o u n d   t h a t   M e m b e r   S t a t e s 
u s e   t h e i r   o w n ,   s o m e t i m e s   d e f i c i e n t ,   a p -
proaches to the control of simplified pro -
cedu res, resu l ting  in :

VII.
I n   o r d e r   t o   i m p r o v e   c o n t r o l s   o n   s i m p l i-
f i e d   p ro ce d u re s   a n d   to   co nt r i b u te   to   t h e 
development of EU trade facilitation pol-
ic y,  the  Comm ission  should:

- 

- 

- 

- 

gene ral l y  p o o r  or  p oo r l y   d oc um e nte d 
a u d i t s   b e fo r e   a u t h o r i s i n g   a   t r a d e r   t o 
use s imp lified p ro cedures,

little use of automated data proces sing 
t e c h n i q u e s   f o r   c a r r y i n g   o u t   c h e c k s 
d u r i n g   t h e   p r o c e s s i n g   o f   s i m p l i f i e d 
pro cedu res,

e x c e s s i v e   u s e   o f   s i m p l i f i c a t i o n   p r a c -
t i c e s ,   n a m e l y   t h e   n o t i f i c a t i o n   w a i v e r 
u n d e r   t h e   l o c a l   c l e a r a n c e   p ro c e d u r e, 
w h i c h   p r e v e n t   r i s k - b a s e d   c h e c k s   b e -
fo re   g o o d s   co m e   o nto   t h e   E U   m a r k e t, 
and

ex-post audits of the trader ’s commer-
c i a l   d o c u m e n t s   a n d   a c c o u n t s   o f   p o o r 
q u a l i t y,   i n s u f f i c i e nt l y   f re q u e nt   o r   n o t 
ade qu ate ly  t arget in g transac tio ns.

VI.
T h e   C o u r t   m e a s u r e d   t h e   e f f e c t i v e n e s s 
o f   c o n t r o l s   o n   i m p o r t s   u n d e r   s i m p l i f i e d 
p ro ce d u re s   by   te s t i n g   ra n d o m l y   s e l e c te d 
d e c l a r a t i o n s   w h e r e   a   p r e f e r e n t i a l   d u t y 
r a t e   w a s   c l a i m e d   o r   w h e re   i m p o r t   d o c u-
m e n t s   we re   re q u i re d   t o   c o m p l y   w i t h   t h e 
c o m m o n   t r a d e   p o l i c y.   A   h i g h   f r e q u e n c y 
o f   e r r o r s   w a s   f o u n d   i n   s i x   o u t   o f   n i n e 
M e m b e r   S t a t e s ,   o f t e n   d u e   t o   t h e   f a c t 
t h a t   t r a d e r s   d i d   n o t   p o s s e s s   t h e   n e c e s-
s a r y   d o c u m e nt s   e nt i t l i n g   t h e m   to   i m p o r t 
g o o d s   s u b j e c t   t o   t r a d e   p o l i c y   m e a s u r e s 
o r   t o   b e n e f i t   f r o m   t h e   a p p l i c a t i o n   o f   a 
preferent ial  d ut y  rate.

- 

- 

- 

- 

- 

- 

take the Cour t's findings into account 
w h e n   c o n s i d e r i n g   f u r t h e r   s i m p l i f i c a-
tion s for c us toms  procedures,

e n c o u r a g e   M e m b e r   S t a t e s   t o   r a p i d l y 
i m p l e m e n t   t h e   r e c e n t l y   d e v e l o p e d 
regulator y  framewor k  and gu idel i ne s, 
m o n i t o r   t h e i r   i m p l e m e n t a t i o n   a n d 
fur t her  en han ce th e fram ewor k  i n th e 
l i g ht   o f   t h e   Co u r t ’s   a n d   i t s   ow n   a u d i t 
an d mon itor ing  result s,

put in place common standards for ex-
p o s t   a u d i t s   i n   c u s t o m s ,   u s i n g   s o u n d 
a u d i t   m e t h o d o l o g y   a n d   a   s y s t e m s -
based  approac h,

d e ve l o p   a u to m ate d   E U -w i d e   r i s k   p ro -
f i l e s   f o r   TO R   a n d   t h e   c o m m o n   t r a d e 
p o l i c y   a n d   c r i t i c a l l y   r e v i e w   M e m b e r 
States’ s im plific ation prac tice s,

e n c o u r a g e   M e m b e r   S t a t e s   t o   c o m p u-
t e r i s e   a l l   a s p e c t s   o f   t h e   p r o c e s s i n g 
o f   s i m p l i f i e d   p ro c e d u re s   fo r   i m p o r t s, 
an d

invite  M ember  States  to  make  trade r s 
m o r e   a w a r e   o f   t h e i r   o b l i g a t i o n s   a n d 
r e s p o n s i b i l i t i e s   a n d   p r o m o t e   t r a d e r 
compliance me asure me nt.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

INTRODUCTION

10

 Simplified customs procedures for impor t are a key element of EU 
customs polic y : they facilitate the business of traders by redu cing 
custom s  fo r mal ities  and  control   be fore  th e   re le as e  of   g oods.   Fig-
ures for 2008 indicate that around 70 % of all customs impor t pro -
cedures are simplified. Their impact on the collection of Trad  itional 
O wn R e so urces ( TOR ) is  thu s co ns i de re d to be  subs tant ial.

1  Regulation (EC) No 450/2008 of 
the European Parliament and of the 

Council (OJ L 145, 4.6.2008, p. 1).

 E u r o p e a n   c u s t o m s   l e g i s l a t i o n   h a s   b e e n   c o n s t a n t l y   a m e n d e d   i n 
order to adapt it to the evolving technical, economic and political 
c o n d i t i o n s.  T h i s   h a s   re s u l t e d   i n   t h e   M o d e r n i z e d   C u s t o m s   C o d e  o f 
2008 1, w hich  fu r t her p aves  t he way  for  t rad e  fac i li tat ion .

 This  au dit   rep or t  analys es   t wo   im por tant   c us tom s  proce dure s   f a-
c i l i t a t i n g   t h e   re l e a s e   o f   g o o d s   fo r   f re e   c i rc u l at i o n ,   t h e   s i m p l i f i e d 
declaration procedure (SDP) and the local clearance procedure (LCP). 
These are long-standing and widely used in the EU and constitute 
a key e l ement o f trade facil itat io n. 

 U n d e r   a   s t a n d a r d   c u s t o m s   p r o c e d u r e   f o r   i m p o r t ,   a   t r a d e r   h a s 
t o   p r e s e n t   t h e   g o o d s   t o   c u s t o m s ,   l o d g e   a   s t a n d a r d   d e c l a r a t i o n 
a n d   p a y   o r   p r o v i d e   a   s e c u r i t y   f o r   a n y   d u t i e s   b e f o r e   t h e   g o o d s 
a re   re l e a s e d.   Cu s t o m s   m a y   c h e c k   d o c u m e n t s   a n d / o r   i n s p e c t   t h e 
goods.

 A trader with frequent impor ts can apply for the use of simplified 
procedures. Their use is subjec t to prior authorisation. By carr ying 
o u t   a   p r e - a u t h o r i s a t i o n   a u d i t   n a t i o n a l   c u s t o m s   s e r v i c e s   s h o u l d 
ensure that an applicant trader is reliable, assess whether they will 
be able to car r y out any checks they deem necessar y and obtain a 
secur it y to cover  any du ties p ayable.

 Once authorisaton to use simplified procedures is granted, a trader 
can lodge a customs declaration which can be par tially completed, 
a   c o m m e r c i a l   d o c u m e n t   ( e . g .   a n   i n v o i c e )   ( S D P )   o r   s i m p l y   b y   a n 
e n t r y   i n   h i s   r e c o r d s   ( LC P ) .  T h e   t r a d e r   c a n   o b t a i n   s i m p l i f i c a t i o n s 
fo r   p re s e nt i n g   t h e   g o o d s   to   c u s to m s   a n d   t h e   g o o d s   a re   re l e a s e d 
again st  se cu r it y and any du ties pai d at a l ate r  st ag e.  Th us t he  en-
tire clearance process is accelerated and the trader has the goods 
at  his d is po sal  mo re qu ick l y.

1. 

2. 

3. 

4. 

5. 

6. 

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
 
 
2 

In accordance with, inter alia, 

Decision No 624/2007/EC of the 

European Parliament and the Council 

of 23 May 2007 establishing an  

action programme for customs in  

the Community (Customs 2013)  

(OJ L 154, 14.6.2007, p. 25).

11

7. 

8. 

9. 

10.  

 A f t e r   a   d e f i n e d   p e r i o d   —   u s u a l l y   a   m o n t h   —   t h e   t r a d e r   s u b m i t s 
a   co m p re h e n s i ve   d e c l a r a t i o n   (s u p p l e m e n t a r y   d e c l a ra t i o n ) ,   w h i c h 
s u m m a r i s e s   t h e   s i m p l i f i e d   d e c l a r a t i o n s / re c o rd   e n t r i e s   a n d   c o m-
pletes th e missing  infor mation,   an d  pays  any  du ti es  d ue.

 C u s t o m s   s e r v i c e s   g e n e r a l l y   p l a c e   r e l i a n c e   o n   t h e   c o m p l e t e n e s s 
and accurac y of the information provided by the trader and checks 
before  rele ase are o nl y excep tio n all y  car r i ed  out.

 A s   m u c h   o f   t h e   k e y   i n fo r m a t i o n   i s   p r o v i d e d   l a t e r   i n   t h e   s u p p l e -
mentar y declaration, any controls that are carried out usually take 
place af ter release of the goods in the for m of a check of customs 
documents or reconciliation checks, or as full ex-post audits at the 
trader ’s  p remise s.

 EU customs legislation establishes the legal framework for carr ying 
ou t co nt ro ls and imp oses  th e o b li g ati on to use  r is k man ag em ent. 
Wi t h   e f fe c t   f ro m   1   J a n u a r y   2 0 0 9   t h e   Co m m i s s i o n   h a s   i n t ro d u ce d 
s p e c i f i c   r u l e s   a s   to   h ow   to   co nt ro l   s i m p l i f i e d   p ro ce d u re s,   i n   p a r-
ticular regarding pre -author isation audits and har monised condi-
tions a nd  c r iter ia t hat the trade r  must  f ulf il be fore bei n g granted 
aut hor isatio n to  u se simp l ified  p roced ure s.

11.  

 Th e   Co m m i s s i o n’s   o b j e c t i ve 2  i s   to   m a k e   n at i o n a l   c u s to m s   a d m i n-
i s t r a t i o n s   a c t   a s   i f   t h e y   we re   o n e   a n d   t o   t h i s   e n d   i t   h a s   a l s o   d e -
veloped guidelines (‘sof t law ’) regarding customs audit in general 
and  co nt rol s on  s imp l ified p ro ce dure s  i n  par t ic ula r.

12.  

 A   s c h e m a t i c   p r e s e n t a t i o n   o f   h o w   S D P   a n d   LC P   w o r k   i s   g i v e n   i n 
A nnex   I.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
 
 
AUDIT SCOPE AND APPROACH

12

M A I N   AU D I T   O B J E C T I V E

13.  

 The audit assessed whether the regulator y framewor k and control 
a p p r o a c h   d e v e l o p e d   b y   t h e   C o m m i s s i o n   a n d   p u t   i n   p l a c e   i n   t h e 
M ember  States  effec tively   control  si mpli fi ed   proce dures,  prov id e 
re a s o n a b l e   a s s u r a n c e   fo r   t h e   c o r re c t   c o l l e c t i o n   o f  TO R   a n d   h e l p 
ensure that traders comply with the obligations deriving from the 
commo n trade p ol ic y.

14.  

The  aud it  so ug ht ans wers  to  the  followin g  s peci fi c  ques ti on s:

(a )  Has the Commission developed a sound approach for controls 
o n   s i m p l i f i e d   p r o c e d u r e s ,   t a k i n g   i n t o   a c c o u n t   i n t e r n a t i o n a l 
b e s t   p r a c t i c e s,   a n d   d i d   i t   m o n i t o r   t h e   c o r re c t   a p p l i c a t i o n   o f 
sim pl if ie d pro cedu res and the controls  t he re on ?

(b)   D o   M e m b e r   S t a t e s   u s e   a   s o u n d   a n d   s t a n d a r d i s e d   a p p r o a c h 
fo r   co n t ro l s   o n   s i m p l i f i e d   p ro ce d u re s   a n d   a re   t h e s e   co n t ro l s 
effe c t ive?

AU D I T   A P P R O AC H   A N D   M E T H O D O LO G Y

15.  

 The  au dit  was  car r ied  out   in  t wo  st ag es.   Fi r st   th e   Cour t   pre pare d 
a   c o n t r o l   m o d e l   fo r   s i m p l i f i e d   p r o c e d u r e s   ( s e e   A n n e x   I I) ,   b a s e d 
on its own experience and that of other organisations. I t analysed 
c u r re nt   p ra c t i ce   by   co nt a c t i n g   n o n - E U   co u nt r i e s   a n d   v i s i t i n g   t h e 
World Customs Organisation ( WCO) in order to obtain information 
on  inter nat iona l co ntrol  ap pro a ch es  o n  sim plif i ed  proce dure s.

16.  

 The Cour t then benchmarked the Commission’s recommended con-
trol approach against the control model and assessed the Commis-
sion’s mo nitor in g ac tivities o n si mpli f ie d proced ures.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
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17.  

18. 

 I n   t h e   s e c o n d   s t a g e   t h e   Co u r t   re v i e we d   t h e   q u a l i t y   o f   t h e   s t r a t -
e g i e s   a n d   t h e   c o n t r o l s   a c t u a l l y   a p p l i e d   i n   r e s p e c t   o f   s i m p l i f i e d 
p ro ce d u re s   i n   n i n e   M e m b e r   St ate s 3  a n d   co m p a re d   t h e m   w i t h   t h e 
control model. These Member States accounted for more than 60  % 
o f   a l l  TO R   c o l l e c t e d   i n   t h e   E U   i n   2 0 0 8   a n d   we re   u s i n g   s i m p l i f i e d 
procedu res for imp or t decl arati o ns  to  a  signif i cant ex te nt 4.

 The quality of the control strategies and the controls actually carried 
out in these Member States were assessed in the light of the replies 
received to questionnaires and through evidence obtained on-the -
spot and by walk-through tests on a total of 157 trader files.

3  Belgium, France, Italy, Hungary, 
the Netherlands, Slovenia, Sweden 

and the United Kingdom. Ireland 

was audited in the framework of 

the pre-study and thus before the 

control model was finalised. As the 

audit approach was comparable, the 

results are presented together with 

those in respect of the other Member 

States audited.

4 

Imports using simplified 

procedures as a proportion of total 

import declarations for the audited 

Member States ranged from 26 % to 

93 % in 2008.

G R A P H   1

AU D I T E D   ME M B E R   STAT E S   A N D  T H E I R   I M P O R TA N C E   F O R  TO R 
CO L L E C T I O N   I N  2008

Other Member States
39,3  

Ireland
1,3 

% of TOR collected in 2008

Belgium
10,4 

France
8,1 

Italy
10,1 

Hungary
0,6  

Netherlands
11,5 

United Kingdom 
15,6 

 Sweden
2,6 

Slovenia
0,5 

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19. 

20.  

 D u r i n g   a n   a u d i t   o f   2 0 0 7 ,   t h e   Co u r t   h a d   i d e n t i f i e d   we a k n e s s e s   i n 
the  op erat ion  of  s imp l if ied  p ro ced ures   in   se ve ral  M em ber   St ate s, 
and in par ticular a higher risk of error under simplified procedures 
w h e n   t ra d e r s   c l a i m   t h e   u s e   o f   a   p re fe re nt i a l   d u t y   rate 5  o r   i m p o r t 
goods s ubj ec t to commo n  trade po lic y  meas ure s 6. 

 T h e   l e g a l i t y   a n d   re g u l a r i t y   o f   9 6 7   c u s t o m s   d e c l a r a t i o n s   re l a t i n g 
to  t he  years   20 05   to  2 00 8  and  s ele c te d  at   ran dom   in   th e  M em ber 
States a udited were check ed in ord er  to con clude  on  w he t he r  t h e 
controls in place in these Member States had prevented underpay-
m e nt   o f  TO R   a n d   i m p o r t s   t h at   d i d   n o t   re s p e c t   t h e   co m m o n   t ra d e 
polic y. 

5 

Imports of goods from third 

countries are liable to duties (Own 

Resources of the EU budget). Under 

certain circumstances, the duty 

rate can be reduced on the basis of 

preferential trade agreements on 

the condition that the importer has 

specific documents at his disposal 

e.g. certificates of origin.

6  Certain imports such as textiles 
or steel are the subject of specific 

monitoring measures derived from 

the common trade policy in order to 

protect the interests of EU producers. 

If traders want to import such goods 

from certain countries, they need 

specific customs documents at 

the moment of release, e.g. import 

licences or surveillance documents.

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OBSERVATIONS

15

H A S  T H E  CO M M I S S I O N  D E V E LO P E D  A  S O U N D  A P P R O AC H 
F O R   C O N T R O L S   O N   S I M P L I F I E D   P R O C E D U R E S ,   TA K I N G 
INTO ACCOUNT INTERNATIONAL BEST PR AC TICES, AND DID 
I T   M O N I TO R  T H E   CO R R E C T   A P P L I C AT I O N   O F   S I M P L I F I E D 
P R O C E D U R E S   A N D  T H E   CO N T R O L S  T H E R E O N ?

21.  

 Simpli fied p ro ce dures  are lo n g- st and in g  an d we re  codi fi ed  i n th e 
C u s t o m s   C o d e   i n   1 9 9 2 7.   T h e   C o u r t   a s s e s s e d   t o   w h a t   e x t e n t   t h e 
Co m m i s s i o n   h a s   d e ve l o p e d   co m m o n   s t a n d a rd s   fo r   t h e   co nt ro l   o f 
s i m p l i f i e d   p ro ce d u re s   a n d   h ow   i t   h a s   m o n i to re d   t h e i r   a c t u a l   i m-
plementat ion.

22.  

23.  

24.  

T H E   I N I T I A L   R E G U L ATO R Y   F R A M E W O R K  WA S 
I N S U F F I C I E N T   B U T  WA S   I M P R O V E D   F R O M  T H E 
B E G I N N I N G   O F  2009

 I n  200 8  t he  imp l ementatio n  o f  t h e  con cept   of   t he   AE O  st ar ted   in 
t h e   E U.   A n   A E O   i s   a   p r i v i l e g e d   u s e r   o f   s i m p l i f i c at i o n s   i n   c u s to m s 
w h o   n e e d s   t o   f u l f i l   s p e c i f i c   c o n d i t i o n s   a n d   c r i t e r i a   b e f o r e   t h i s 
status  is granted 8.

 I n  order  to  har mo nise  th e  A E O  con d it ion s  a nd   c r ite r ia  wi th   th os e 
fo r   t r a d e r s   u s i n g   t h e   S D P   a n d   t h e   LC P,   t h e   C o m m i s s i o n   a d o p t e d 
a  regul atio n 9  w hich   int rod uced   as   of   1  J an ua r y  2 0 0 9,   for   t h e  f ir s t 
t i m e ,   a   s e t   o f   s p e c i f i c   c o n t r o l s   t o   b e   c a r r i e d   o u t   w h e n   c u s t o m s 
authorise traders to use these two procedures. The regulation also 
introduced the legal obligation for M ember States to computerise 
simplif ie d pro cedu res by 1 Janua r y  20 1 1 .

 The Commission has also developed comprehensive guidelines for 
the singl e au thor is atio n for  s im pli fi ed  proce dure s 10. S uc h  aut hor-
isation enables traders to centralise the formalities in the customs 
a d m i n i s t rat i o n   o f   t h e   a u t h o r i s i n g   M e m b e r   St ate,   e ve n   w h e re   i m-
p o r t s   m a y   t a k e   p l a c e   i n   a n o t h e r   o n e .   I n   t h e   c o u r s e   o f   2 0 0 8   t h e 
Co m m i s s i o n   e x te n d e d   t h e   a p p l i c a b i l i t y   o f   t h e   c o n ce p t s   o f   t h e s e 
guidelines to national authorisations for simplified procedures i.e. 
authorisations where impor ts and customs formalities take place in 
the same M ember State as the conditions and criteria for granting 
both a ut hor is ations are th e s am e. 

7  Council Regulation (EEC)  
No 2913/92 (OJ L 302, 19.10.1992, 

p. 1).

8  The Commission has issued 
comprehensive guidelines for 

national customs services regarding 

the authorisation of the AEO status 

(cf. DOC TAXUD/2006/1450 of  

29 June 2007).

9  Commission Regulation (EC)  
No 1192/2008 (OJ L 329, 6.12.2008, 

p. 1).

10  TAXUD/1284/2005.

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11  Inter alia, the Revised Kyoto 
Convention to which the EC acceded 

by Council decision 2003/231/EC 

(OJ L 86, 3.4.2003, p. 21) and the 

guidelines thereon.

12  TAXUD/2006/1452; The AEO 
compact (Compliance Partnership 

Customs and Trade) model is a 

methodology for assessing the 

risks linked to a trader’s business 

by an analysis of his administrative 

organisation and his internal  

control system.

13  OJ L 117, 4.5.2005, p. 13.

14  The main features of the CRMF 
have been in force since January 2007 

and those concerning security/safety 

were planned to come into effect 

on 1 July 2009; however, as certain 

Member States had not reached a 

sufficient level of computerisation, 

this date could not be met and it is 

now in effect postponed until the 

end of 2010.

25.  

 The framework now largely accords with the Cour t ’s control model 
regarding simplified procedures and also takes into account inter-
nat iona ll y accep ted s tandards 11 for  such  cont rols.

26.  

 Howeve r t he Co mmissio n’s gu ide li ne s  do n ot  spe c if y :

- 

- 

- 

- 

the use of risk assessment methodology, such as the AEO com-
pac t  mo de l 12,  dur ing  pre -aut hor isation  audit s;

the necessity to carr y out a minimum number of checks before 
rel ease ;

the advantage of an automated reconciliation between supple -
me nt ar y and simp l ified d ecl arat ion s/record  e nt r ie s to en s ure 
th e co mp l etenes s  of  the for me r ;  no r

th e advant ag e of  as su rance me asures  (e.g.  t rade r  co mplia nce 
me asu reme nt ).

27.  

28.  

M A N D ATO R Y   A P P L I C AT I O N   O F   AU TO M AT E D   R I S K 
A N A LYS I S   N OT  Y E T   I M P L E M E N T E D

 R e g u l a t i o n   ( E C )   N o   6 4 8 / 2 0 0 5   o f   t h e   E u ro p e a n   Pa r l i a m e n t   a n d   o f 
the  Cou ncil 13  has   int rod uced   the  oblig ation   th at  customs   contro l 
b e   b a s e d   o n   r i s k   a n a l ys i s   u s i n g   a u to m ate d   d at a   p ro ce s s i n g   te c h-
n i q u e s   a n d   t h e   C o m m i s s i o n   h a s   d e v e l o p e d   a n   E U - w i d e   I T- b a s e d 
r isk  man ageme nt  s ys tem  for  c usto ms,   th e   Com mon   R is k  M a nage -
ment  Framewo r k (C RM F) 14.

 Pr ior it y was given to the implementation of common cr iter ia (r isk 
profiles) for risk analysis on goods at their first point of entr y into 
the EU for securit y/safet y purposes. No such profiles covering TOR 
o r   t h e   c o m m o n   t r a d e   p o l i c y   h ave   b e e n   d e ve l o p e d   a t   E U   l e ve l   t o 
date in t his co ntex t.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
15  The Customs audit guide was 
developed under the Customs 

2007 programme and is an agreed 

guideline between the Commission 

and the Member States on how 

ex-post audits in customs should be 

carried out. It has been translated 

into 19 languages and distributed to 

Member States.

16  Under normal circumstances, the 
time period allowable for collecting 

customs duties is three years after  

the actual import has taken place  

(cf. Article 221(3) of Regulation (EEC) 

No 2913/92).

17

29.  

30.  

31.  

32.  

33.  

 Moreover, since simplified procedures can be manual until the end 
o f   2 0 1 0 ,   t h e   a p p l i c at i o n   o f   a ny   a u to m ate d   r i s k   p ro f i l e s   ( n at i o n a l 
o r   E U - w i d e )   w i l l   d e p e n d   o n   t h e   d e g r e e   o f   c o m p u t e r i s a t i o n   a n d 
the  de cisio n  o f  t he  individu al   M e mbe r   St ate  to  ac t uall y  ca r r y   out 
a u to m ate d   r i s k   a n a l ys i s   o n   s i m p l i f i e d   p ro ce d u re s.   Co n s e q u e nt l y, 
a common approach to manage the risks ( TOR and other) incurred 
by  the   us e  o f  s im p l if ied   p ro cedu re s  w ill   not   be   appli ed  unti l  t hat 
date.

 Fur t he r mo re,  a  n u mb e r  o f  M ember  States  customs  ser vices  allow 
p r a c t i c e s   u n d e r   LC P   w h i c h   re n d e r   i t   i m p o s s i b l e   t o   c a r r y   o u t   r i s k 
a n a l y s i s   o r   c h e c k s   b e f o r e   t h e   r e l e a s e   o f   g o o d s .   T h e s e   M e m b e r 
S t a t e s   a p p l y   a   f l e x i b l e   i n t e r p r e t a t i o n   o f   E U   c u s t o m s   l e g i s l a t i o n , 
which only permits this prac tice in exceptional circumstances (see 
paragrap h 46).

 The Commission has not given the necessar y guidance in order to 
p re ve nt   t h e   u n j u s t i f i e d   a n d   exce s s i ve   u s e   o f   t h i s   p ra c t i ce,   w h i c h 
i m p e d e s   t h e   a p p l i c a t i o n   o f   a u t o m a t e d   r i s k   a n a l y s i s ,   e v e n   a f t e r 
f u l l   c o m p u t e r i s a t i o n   o f   s i m p l i f i e d   p r o c e d u r e s   h a s   b e e n   a c c o m-
plished.

G U I D E L I N E S   F O R   E X - P O S T   AU D I T S   A R E   N OT  Y E T 
CO M P L E T E

 With the modernisation of EU customs legislation the Commission 
has encouraged trade facilitation, with the associated reduc tion in 
customs   check s  b efore  release,  wh ich   sh ould   be   compen s ated   by 
a risk-based and common approach for enhanced customs control, 
in par t icu lar p os t- event. 

 R egardin g  the  s tandardisatio n  o f   ex- post   audi ts,  t h e  Com mis s ion 
p ro d u ce d   i n   2 0 0 7   t h e   Cu s to m s   a u d i t   g u i d e 1 5  w h i c h   cove r s   a l l   c u s-
toms procedures. This guide does not take into account the risk of 
loss of TOR  by time -b ar r ing 16 nor does th e s ec tion  on  audit  me t h-
odology cover key aspec ts such as risk assessment tools, sampling 
met hods  and audit  r isks. 

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
 
18

34.  

35.  

36.  

37.  

38.  

D E D I C AT E D   I N S P E C T I O N S   O N   S I M P L I F I E D   P R O C E D U R E S 
BY  T H E   CO M M I S S I O N  TO O K   P L AC E   F O R  T H E   F I R S T  T I M E 
I N  2 0 08

 DG TAXUD ’s responsibilit y is to ensure that EU customs legislation 
is  unifo r ml y  ap pl ied  and  thus   to   m ake  n at ion al  customs   a dmi ni s-
trations  ac t   as  if  they  were  o ne.  DG   B UDG   c a r r ie s  out   in spe c ti on s 
o n   TO R ,   d u r i n g   w h i c h   c o m p l i a n c e   w i t h   t h e   a p p l i c a b l e   c u s t o m s 
legislat io n is als o ver ified.

17  Member States audited in the 
framework of the DAS 2007: Bulgaria, 

Denmark, Germany, Spain, Portugal, 

Romania.

 T h e   C o u r t   i d e n t i f i e d   w e a k n e s s e s   i n   t h e   o p e r a t i o n   o f   s i m p l i f i e d 
p ro ce d u re s   i n   2 0 0 7   i n   s e ve ra l   M e m b e r   St ate s 1 7  a n d   s u b s e q u e nt l y 
decide d to c ar r y out t his fu ll -s cale   audi t.

 DG  BUD G  sel ec ted  simp l ified  p ro ce dure s   a s  a  s peci f ic   s ubje c t   for 
its  insp ec t ion  for  th e  firs t  t ime  i n  2 0 0 8 .   I t   id enti f i ed   a  n umber   of 
deficie ncies  in th e seven M emb e r  St ates  i n spe c ted  ( c f.  Ta bl e  1).

 DG TAX UD  est ab lis hed  a  mo nito r i n g  fu nc ti on   for   th e  un ifor m   a p -
p l i c a t i o n   o f   E U   c u s t o m s   l e g i s l a t i o n   i n   2 0 0 6 .   I t   h a s   i n c l u d e d   t h e 
monitoring of elements of simplified procedures in its monitoring 
progra mmes  for  20 09  and 2010.

 The obligation to apply an appropriate framework for controls only 
from 200 9,  t he ab s ence of  a com m on  and  a utomate d r i sk  an alys is 
for checks on TOR and common trade polic y aspec ts before release 
a n d   i n co m p l e te   g u i d e l i n e s   fo r   e x- p o s t   a u d i t s   i n c re a s e   t h e   l i k e l i-
h o o d   t h at   r i s k s   a s s o c i ate d   w i t h   t h e   u s e   o f   s i m p l i f i e d   p ro ce d u re s 
mater ial is e.

TA B L E   1

O V E R V I E W   O N   D G   B U D G’S   I N S P E C T I O N   F I N D I N G S   O N   S I M P L I F I E D 
P R O C E D U R E S   I N  2008

Member State

DE

IE

ES

FR

PL

FI

UK

Deficiencies in
Authorisation process

Checks before release

Use of risk analysis

Simplification practices

Ex-post controls/audits

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D O   M E M B E R   S TAT E S   U S E   A   S O U N D   A N D   S TA N D A R D I S E D 
A P P R O AC H   F O R   CO N T R O L S   O N   S I M P L I F I E D 
P R O C E D U R E S   A N D   A R E  T H E S E   CO N T R O L S   E F F E C T I V E ?

39.  

40.  

 The Co ur t  reviewed the co ntro l s an d audit  approac h es  a ppl ie d in 
n i n e   M e m b e r   S t a t e s   a n d   b e n c h m a r k e d   t h e m   a g a i n s t   i t s   c o n t r o l 
model. This included the review of 157 trader files. In addition, the 
Co u r t   m e a s u re d   t h e   e f fe c t i ve n e s s   o f   t h e   c o n t ro l s   u s i n g   s a m p l e s 
of customs declarations. A total of 967 customs declarations were 
checked.

18  Traders complying with the legal 
conditions for the use of simplified 

procedures and providing the 

necessary assurance that they are 

aware of their obligations in this 

context.

M E M B E R   S TAT E S   F O L LO W E D  T H E I R   O W N   A P P R O AC H E S 
W I T H   D I F F E R E N C E S   I N   CO N T R O L S   AT   E AC H   S TAG E

 A l l   M e m b e r   S t a t e s   h a d   n a t i o n a l   i n s t r u c t i o n s   f o r   s i m p l i f i e d   p r o -
cedures   in  pl ace   and  us ed  t heir   own  met ho dolog y   for   controls  in 
this context. The quality and quantity of controls carried out in the 
different processing phases (pre -authorisation, during processing 
and ex-post) of simplified procedures varied across Member States 
a n d   A n n e x   I I I  p ro v i d e s   a n   o v e r v i e w   o f   t h i s   q u a l i t y   a n d   q u a n t i t y 
per co nt rol  mo del  standard  fo r  e ach  M embe r   State  a udi ted.

PR E-AU T H O R I S AT I O N   CO N T R O L   S TAG E

T h e   N e T h e r l a N d s   c u s T o m s   s e r v i c e s   h a d   T h e   b e s T   c o N c e p T   f o r 
 p r e - a u T h o r i s a T i o N  a u d i T s,  b u T  w e r e  N o T  a b l e  T o  d e m o N s T r a T e  T h a T 
T h e y  h a d  a p p l i e d  i T

41.  

 Traders  au tho r is ed  to  us e  s imp l if ie d  proce dure s   h ave  th e  be n ef it 
o f   a n   a cce l e rate d   c u s to m s   c l e a ra n ce   p ro ce s s   w i t h   fe we r   co nt ro l s 
before goods are released. Only reliable traders 18 should have such 
a facilit y. Their reliabilit y should be evaluated by means of a thor -
ough pre -authorisation audit including an assessment of the risks 
affecting the trader ’s business and a recommendation of how often 
and how intensively the activities of the trader should be reviewed 
(contro l  p l an) af ter th e granting  o f t he   aut ho r isati on .

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42.  

43.  

 O f the  nine  aud ited M emb er State s, th e  N e th er lan ds  h ad t h e best 
co n ce p t   fo r   p re - a u t h o r i s at i o n   a u d i t s,   w h i c h   f u l l y   co r re s p o n d s   to 
t h e   C o u r t ’s   c o n t r o l   m o d e l .   H o w e v e r   t h e   C o u r t   c o u l d   f i n d   l i t t l e 
evidence that the Netherlands customs ser vices had followed this 
a p p r o a c h .   T h e   a p p r o a c h e s   a p p l i e d   i n   t h e   o t h e r   M e m b e r   S t a t e s 
audited were  o f ten defic ient.

 M o re o ve r,   M e m b e r   S t a t e s   c o u l d   n o t   a l w ay s   d e m o n s t r a t e   t h a t   a n 
 audit assessing the internal controls and administrative organisation 
o f   t h e   t ra d e r   b e fo re   gra nt i n g   t h e   a u t h o r i s at i o n   h a d   b e e n   c a r r i e d 
ou t.   Aud it   rep o r t s   cou l d  of ten  n ot  be   li n ked   to   t he   auth or i s ati on 
re v i e we d   b y   t h e   Co u r t .   O n l y   t h e   B e l g i a n   c u s t o m s   s e r v i c e s   c o u l d 
system at icall y p rovide sati sfac tor y e vid en ce  of  pre -auth or i sati on 
a u d i t s.   L i t t l e   e v i d e n ce   wa s   fo u n d   t h at   t ra d e r   r i s k   a s s e s s m e nt s   o r 
contro l  p lans had b een drawn u p.

44.  

 Table 2 shows a more detailed view of the Cour t ’s findings regard-
ing pre -au th or isatio n au dit s.

TA B L E   2

AS S E S S M E N T   O F   P R E-AU T H O R I S AT I O N   AU D I T S

BE 

17

FR

20

IT

20

HU

16

NL

18

SI

17

SE

22

UK

20

Control model standards

Number of trader files reviewed

Audit made/audit report available

Administrative organisation/internal controls checked

Accounting/ systems incl. IT checked

Check for existence of serious offences 

Financial solvency checked

Trader risk assessment carried out

Control recommendation (plan)

Assurance elements (e.g. training)

  satisfactory;  

N.B.:  
The pre-authorisation aspect was not checked for Ireland.

  partly satisfactory;  

  not satisfactory. 

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
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CO N T R O L S   D U R I N G   P R O C E S S I N G   —   C H E C K S   B E F O R E 
R E L E A S E

e x c e s s i v e   u s e  o f  s i m p l i f i c a T i o N s  i N  T h e lcp

 S i m p l i f i e d   p r o c e d u r e s   i m p l y   t h a t   f e w   c o n t r o l s   a r e   m a d e   b e f o r e 
releas e.  However, th e Cour t co n s id er s  t hat a  mi ni mum n umbe r  of 
c h e c k s   b a s e d   o n   a u t o m a te d   r i s k   a n a l ys i s   s h o u l d   b e   m a d e   a t   t h i s 
s t a g e   i n   o r d e r   t o   m a i n t a i n   a n   u n c e r t a i n t y   f a c t o r   f o r   t h e   t r a d e r, 
detec t impor ts that do not respec t common trade polic y rules and 
avoid TOR  und er p ayments.

 EU customs legislation requires that traders have to present goods 
or to notify customs about their intention to have goods released 
for  fre e  c ircul at ion . Th is   ap p l ies  e qually   in   t he   frame wor k  of   si m-
p l i f i e d   p ro ce d u re s.   H owe ve r   u n d e r   LC P   c u s to m s   m ay   a u t h o r i s e   a 
‘super-simplification’ (notification waiver) in exceptional and jus-
tified c ases 19 w hereby th e trader does n ot n eed  to no ti f y c us tom s 
a b o u t   e a c h   i n d i v i d u a l   c o n s i g n m e n t   a n d   h i s   i n t e n t i o n   t o   h a v e   i t 
release d fo r fre e circ ulat ion  (s ee paragra ph  3 0 ).

 In five of the nine Member States audited traders using LCP obtain 
the benefit of the above ‘super-simplification’ (notification waiver) 
on a re g ular  bas is 20 w hil e t he legislation allows for  s uc h  a sim pli-
f i c a t i o n   o n l y   i n   c e r t a i n   s p e c i a l   c i r c u m s t a n c e s .   T h e   C o m m i s s i o n 
found similar prac tices in G er many, Spain and Finland in 2008 (c f. 
Tab le 1).

 Although some Member States indicated that the use of this ‘super-
s i m p l i f i c a t i o n’  co u l d   b e   te m p o ra r i l y   s u s p e n d e d   i n   o rd e r   to   a l l ow 
customs to car r y out checks on the goods, they could not demon-
s t r a t e   t h a t   t h i s   w a s   a c t u a l l y   d o n e.  T h u s   fe w   o r   n o   c h e c k s   b e fo re 
releas e we re car r ied  ou t o n LC P  in  t h es e  M em ber   St ate s.

45.  

46.  

47.  

48.  

19  Cf. Article 266(2)(b) CCIP : ‘On the 
condition that checks on the proper 

conduct of operations are thereby 

not affected, the customs authorities 

may […] (b) in certain special 

circumstances, where the nature 

of the goods in question and the 

rapid turnover so warrant, exempt 

the holder of the authorisation 

from the requirement to notify the 

competent customs office of each 

arrival of goods […]’. Commission 

Regulation (EEC) No 2454/93 

(OJ L 253, 11.10.1993,  

p. 1), as amended.

20  Hungary, the Netherlands, 
Slovenia, Sweden, United Kingdom.

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49.  

50.  

51.  

l i T T l e   u s e   o f   a u T o m a T e d   r i s k   a N a l y s i s   f o r   c h e c k s   o N   To r  a N d 
c o m m o N  T r a d e  p o l i c y  i s s u e s  b e f o r e  r e l e a s e

 The use  o f r isk  an al ys is  for c u sto m s control h as  be e n a l eg al ob li-
gation since 1 Januar y 2007 and only automated risk profiles inte -
grated into the processing of customs declarations can sufficiently 
protec t  th e finan cial  and trade polic y  interes ts  of  t he  E U.

 Fr a n c e   a n d   S l o ve n i a   we re   t h e   o n l y   M e m b e r   S t a t e s   t o   h ave   a u t o -
mated  r isk pro fil es  w hic h incl ude d TO R an d  com mo n trade  polic y 
i s s u e s   i n   p l a c e   fo r   a l l   s i m p l i f i e d   p r o c e d u r e s .   I n   S w e d e n   a n d   t h e 
Nether l ands,  suc h p ro fil es covere d  S DP  on ly.

 Where risk-relevant issues came up in the contex t of checks before 
re l e a s e,   t h e y   we re   g e n e ra l l y   p ro p e r l y   re co rd e d,   fo l l owe d - u p   a n d 
fe d   b a c k   i nto   t h e   r i s k   m a n a g e m e nt   s ys te m .   I n   B e l gi u m ,   h owe ve r, 
weak ne sse s  in  the  fl ow   o f  r is k-re le va nt   in for mat ion ,   in   par ti cular 
to the central level,  were identif ie d.

52.  

 Table 3 shows a more detailed view of the Cour t ’s findings regard-
ing ch eck s be fore rel ease for th e  aud ited  M em be r  St ates.

TA B L E   3

AS S E S S M E N T   O F   C H E C K S   B E F O R E   R E L E A S E

BE 

17

FR

20

IE

7

IT

20

HU

16

NL

18

SI

17

SE

22

UK

20

Control model standards

Number of trader files reviewed

‘Super-simplification’ (notification waiver) for LCP

Minimum of checks on TOR

Automated TOR risk profiles 

Automated random selection

Feedback for risk management

N.B.:   

 satisfactory;  

 partly satisfactory;  

 not satisfactory. 

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
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53.  

54.  

55.  

CO N T R O L S   D U R I N G   P R O C E S S I N G   —   C H E C K S   O N 
S U P P L E M E N TA R Y   D E C L A R AT I O N S

 A   t r a d e r   u s i n g   s i m p l i f i e d   p ro c e d u re s   h a s   t o   f i n a l i s e   t h e   c u s t o m s 
declarations at regular inter vals and to do so submits the detailed 
s u p p l e m e n t a r y   d e c l a r a t i o n .   C u s t o m s   s h o u l d   t a r g e t   a   s a m p l e   o f 
t r a n s a c t i o n s   u s i n g   a u t o m a t e d   r i s k   a n a l y s i s   a n d   c a r r y   o u t   c h e c k s 
o n   t h e m .   T h e s e   c h e c k s   s h o u l d   i n c l u d e   a   r e v i e w   o f   t h e   r e l e v a n t 
customs  d oc um ent s  ( invoices, cer t if ic ate s,  li ce nces, etc.)  in  order 
t o   d e t e c t   TO R   u n d e r p a y m e n t s   o r   i m p o r t s   w i t h o u t   t h e   e s s e n t i a l 
docum ents re quired by th e co mmon  trade  polic y,  and  to tak e im-
mediate  re medial  ac tion w here n e ce ss ar y.

21  Belgium, France, Ireland, the 
Netherlands, Sweden and the United 

Kingdom.

22  France, Italy, Hungary and 
Slovenia.

s l o v e N i a  i s  T h e  b e N c h m a r k  f o r  c h e c k s  o N  s u p p l e m e N T a r y   d e c l a r-
a T i o N s

 The Cour t found that supplementar y declarations were submitted 
e l e c t r o n i c a l l y   i n   a l l   a u d i t e d   M e m b e r   S t a t e s.   H o w e v e r,   i n   s i x 2 1  o f 
them little or no review of customs documents was carried out and 
automated TOR-related risk analysis for simplified procedures was 
on ly ap p lied  in four 22 M emb er State s at this  stage.

 A   s y s t e m a t i c   r e c o n c i l i a t i o n   b e t w e e n   s i m p l i f i e d   t r a n s a c t i o n s 
( i . e.   s i m p l i f i e d   d e c l a r a t i o n s   —   S D P   —   a n d   e n t r i e s   i n   t h e   t r a d e r ’s 
records  — LCP) and the supplementar y declaration should be made 
in order to obtain assurance that the latter is complete and accur -
a t e.  T h i s   re c o n c i l i a t i o n   s h o u l d   b e   a u t o m a t e d   w h e n e ve r   p o s s i b l e 
and  any  er ro rs s houl d b e fol l owed  up.

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56.  

 Fr a n c e   a n d   S l o v e n i a   h a d   d a t a   p r o c e s s i n g   s y s t e m s   fo r   s i m p l i f i e d 
p ro ce d u re s   co m p u te r i s e d   to   a n   ex te nt   w h i c h   p e r m i t te d   a n   a u to -
m a t e d   re c o n c i l i a t i o n   fo r   a l l   s i m p l i f i e d   p ro c e d u re s.   S o m e 2 3  M e m-
b e r   S t ate s   c a r r i e d   o u t   a u to m ate d   re co n c i l i at i o n s   fo r   S D P   o n l y   o r 
o cc a s i o n a l l y   m a d e   m a n u a l   re co n c i l i at i o n s.   Ta b l e   4  s h ows   a   m o re 
deta ile d vie w of  the finding s rega rdin g c h ec k s on  supple me ntar y 
declarat io ns  fo r  the au dite d M e mbe r  St ate s.

23  Sweden, the Netherlands 
(automated reconciliation for SDP); 

Belgium, Ireland, Hungary, the 

Netherlands and the United Kingdom 

(occasional manual reconciliations for 

SDP and/or LCP).

TA B L E   4

AS S E S S M E N T   O F   C H E C K S   O N   S U P P L E M E N TA R Y   D E C L A R AT I O N S

Control model standards

Number of trader files reviewed

IT supplementary declarations

Substantive documentary checks

Automated TOR risk profiles 

Automated random checks

Automated reconciliation 

Systematic manual reconciliation 

Feedback for risk management

BE 

17

FR

20

IE

7

IT

20

HU

16

NL

18

SI

17

SE

22

UK

20

N/A

N/A

N/A

N/A

N/A

N.B.:   

 satisfactory;  

 partly satisfactory;  

 not satisfactory; N/A: not applicable.

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57.  

58.  

59.  

60.  

EX-P O S T   AU D I T S

 The ver y nature of simplified procedures implies that few controls 
are made during processing and that customs place reliance on the 
correc tness of the information provided by the trader once the au-
thorisation is granted. The only effec tive way to obtain reasonable 
assurance that this reliance is justified is to conduc t well planned, 
t h o r o u g h   a n d   s u f f i c i e n t l y   f r e q u e n t   e x - p o s t   a u d i t s .  T h e s e   a u d i t s 
s h o u l d   t a r g e t   b o t h   t h e   t r a d e r ’s   s y s t e m s   ( i n t e r n a l   c o n t ro l,   I T,   a c-
counting) and a sample of transac tions, including an examination 
of the underlying accounting records. Such audits should consider 
the r isks of the trader ’s business for customs and in par ticular ad-
dress the  r is k t hat c us to ms  du ties  c ann ot  be  co lle c te d  any  lon ger 
becaus e the y are t ime -b ar red.

 T h e   C o m m i s s i o n’s  ‘ C u s t o m s   a u d i t   g u i d e’  w a s   n o t   o f t e n   u s e d   b y 
national ser vices, in which case they used their own methodology. 
Alt houg h t hese ser vices  en deavour  to a ppl y  a coh erent approac h 
f o r   a u d i t s ,   f o r   e x a m p l e   b y   u s i n g   s t a n d a r d   c h e c k l i s t s ,   r e p o r t i n g 
o r   t r a d e r   r i s k - r a t i n g   t e m p l a t e s ,   c u s t o m s   a u d i t o r s   fo l l o w e d   t h e i r 
own individual approaches and the documentation in the reviewed 
tra der f iles  was  of ten inconsistent  and /or  i ncomple te.

 M ember St ates h ad,  in  g eneral, n at ion al or  re gion al  control  plan s 
w i t h   b ro a d   co nt ro l   o b j e c t i ve s   i n   p l a ce.   H owe ve r   t h e   Co u r t   ra re l y 
found evidence that for the traders selec ted in its sample a recom-
m e n d at i o n   fo r   a u d i t   f re q u e n c y   o r   n at u re   o f   co nt ro l   to   b e   c a r r i e d 
o u t   w a s   a c t u a l l y   i s s u e d   a s   t h e   re s u l t   o f   a   r i s k   a s s e s s m e n t   d u r i n g 
the  aut ho r isat ion p roces s. 

e x- p o s T  a u d i T s   w e r e   N o T  f r e q u e N T  e N o u g h

 Ex-pos t  au dits in cl udin g th e revi e w of  a s uf f ic i ent ly  hi g h number 
of transac tions and the commercial accounts of traders were made 
in seven o f t he  n ine M emb er  State s audi ted, but th e  f re quen c y of 
such audits in order to provide reasonable assurance that customs 
duties   were  no t   af fec ted  by  time - bar r i ng   was   onl y   s ati sf ac tor y   i n 
Hungar y. S uch  aud it s were p ar ti c ul ar ly  i nf re que nt  i n Swed en  a n d 
in the UK .

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61.  

62.  

 Adequate ex-post audits on traders’ systems, including IT systems, 
we re   n o t   c a r r i e d   o u t   i n   fo u r   o f   t h e   n i n e   M e m b e r   S t a t e s   a u d i t e d. 
O n l y   t h e   N e t h e r l a n d s   a n d   t h e   U n i te d   K i n g d o m   h ave   a   s t r u c t u re d 
review of trader per for mance (compliance measurement).  Table 5 
g i ve s   a   m o re   d e t a i l e d   v i e w   o f   t h e   Co u r t ’s   f i n d i n g s   re g a rd i n g   e x -
post a udit s.

 The assurance that simplified procedures are effec tively controlled 
is inadequate in the majorit y of the audited Member States due to 
t h e   a p p l i c at i o n   o f   a   d e f i c i e n t   a u d i t   m e t h o d o l o g y,   p o o r   p l a n n i n g 
and in par ticular the absence of sufficiently frequent and thorough 
e x- p o s t   a u d i t s   o n   t ra d e r s   u s i n g   t h e s e   p ro ce d u re s.  Th i s   re s u l t s   i n 
increased risks of loss of duty amounts to the EU budget and of im-
por ts not respec ting the obligations der iving from common trade 
polic y mea sure s.

TA B L E   5

AS S E S S M E N T   O F   E X-P O S T   AU D I T S

BE 

17

FR

20

IE

7

IT

20

HU

16

NL

18

SI

17

SE

22

UK

20

Control model standards

Number of trader files reviewed

Sound/coherent audit methodology

Systems audit including IT systems

Audits on persistence of conditions

Transactions/accounts audits

Sufficiently frequent audits

% of traders not audited within 3 years

71

70

57

15

6

39

18

91

90

Follow-up of audit reports

N.B.:   

 satisfactory;  

 partly satisfactory;  

 not satisfactory. 

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63.  

64.  

I N E F F E C T I V E   CO N T R O L S   I N  T H E   M E M B E R   S TAT E S

 Th e   Co u r t   m e a s u re d   t h e   e f fe c t i ve n e s s   o f   t h e   co nt ro l s   u s i n g   s a m-
ples of c usto ms dec l arat io n s.  A nn ex IV provides a break down  per 
co u n t r y   o f   t h e   n u m b e r   o f   d e c l a r a t i o n s   i t   c h e c k e d   a n d   t h e   e r ro r s 
detec ted.

 The samples were split into t wo categories, one concerning recent 
declarat io ns  ( from  2008)  in  orde r   to  as s es s  wh e th er   controls  c ur-
rently in place had ac tually prevented er rors, and one concer ning 
d e c l a r a t i o n s   o f   p r e v i o u s   y e a r s   ( 2 0 0 6   o r   e a r l i e r )   i n   o r d e r   t o   s e e 
whether errors had been detec ted and correc ted following ex-post 
audits.

EF F E C T I V E N E S S   O F   CO N T R O L S   F O R  T H E  2008  S A M P L E S

65.  

 Fo r   t h e   ye a r   2 0 0 8 ,   t wo   s a m p l e s   re l at i n g   to   d at a   o r i gi n at i n g   f ro m 
all  cus tom s  off ices   of  the  M emb e r   St ate   a nd   re fer r in g  to  t wo  di f-
ferent p op u latio ns  were sel ec te d:

(a ) 

the financial sample: around 30 declarations per Member State, 
in order to check TOR-relevant issues, i.e. the cor rec t applica-
tion  of  a p refe rential du t y rate on th e ba s is o f  an app ropr iate 
sup p or ting  do cument ( e. g.  a  cer ti fi c ate of  or i gi n ) ;

(b)  th e non -f inanc ial sam ple: aroun d 60  d ecl arat ion s pe r  M e mbe r 
State  in  o rder   to  check   comm on   t rade   po lic y-rele vant   issues, 
i . e .   t h e   e x i s t e n c e   a n d   p r o p e r   h a n d l i n g   o f   i m p o r t   l i c e n c e s 
(tex tile sec tor) or sur veillance documents (iron and steel sec-
to r).

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66.  

67.  

r e s u l T s   f o r  T h e  f i N a N c i a l  s a m p l e  o f 2008

 I n four of the nine M ember States audited, an er ror 24 frequenc y of 
at leas t 1 0 %  was  ident if ied  (see  Gra ph  2) . 

24  These errors amount to 
358 000 euro, but can still be 

 Tr a d e r s   a re   o b l i g e d   to   re t a i n   t h e   p e r t i n e n t   c u s t o m s   d o c u m e n t a-
tion  in  case   c us to ms  want  to   car r y   out  an   ex- post   audit.  Th e y  a re 
infor m ed  a bou t   this   ob l ig ation   dur in g   th e  auth or i sat ion   proces s. 
The high er ror frequenc y in Sweden (19 %) and I reland (40 %) was 
mainly due to the fac t that the necessar y documents did not exist 
or  coul d no t  be  fo u nd.

corrected by a recovery of duties. 

Such recovery is possible within three 

years after the customs debt has 

been incurred.

r e s u l T s   f o r  T h e  N o N- f i N a N c i a l  s a m p l e  o f 2008

68.  

 Licences and sur veillance documents are issued for a fixed quantity 
o f   g o o d s.   I n   o rd e r   to   g u a ra n te e   t h a t   n o   g o o d s   a re   re l e a s e d   o n to 
t h e   E U   m a r k e t   w i t h o u t   a   v a l i d   d o c u m e n t ,   t h e   q u a n t i t i e s   h ave   t o 
be wr it ten- d ow n o n the l icence an d cer t if ie d by customs  for  eac h 
individu al impo r t at the mo ment  of  re lea se.

GR A P H   2 

ER R O R   F R EqU E N C Y   ( % )   I N  T H E   20 08   F I N A N C I A L   S A M P L E

100
90
80
70
60
50
40
30
20
10
0

BE 

FR

IE

IT

HU

NL

SI

SE

UK

Total errors (%)

Errors because of missing essential documents (%)

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69.  

70.  

71.  

 Only Sweden and the UK had an IT-based system for wr iting- down 
licences. However, in the UK , traders could easily over r ide the ob -
ligation to key-in a valid licence and to record the quantit y at the 
moment  whe n t he go ods  are rel e a se d. 

 All M emb er States excep t  Swede n  an d I ta ly  s yste mat ic ally  wrote -
down the respec tive quantities some days or in the month follow-
ing the ac tual impor t, usually when the supplementar y declaration 
wa s lod ge d.

25  The system for managing licences 
and surveillance documents in the 

UK was found to be unreliable. The 

error frequency presented refers only 

to the substantive errors actually 

found. In Ireland, the sample size 

tested was much smaller because 

it was only part on the preliminary 

study.

 I n   3 4   o u t   o f   4 2 6   t r a n s a c t i o n s   ( 8   % ) ,   t h e   w r i t i n g - d o w n   o c c u r r e d 
several   mo nt hs  af ter  t he  rel ease   of   th e  g oods  or   was  ne ver   ce r t i-
fied by cu stoms  aut ho r ities. I n  a n oth er  3 1  cas e s ( 7  %) , th e  impo r t 
l i c e n c e s / s u r ve i l l a n c e   d o c u m e n t s   we r e   n o t   v a l i d   o r   d i d   n o t   r e fe r 
to the goods ac tually impor ted. I n addition, M ember States could 
not provide the p roof that any  s uc h  d oc um ent  a c t ually  ex is te d at 
the mome nt  o f rel eas e fo r 58  tra ns ac ti ons  (1 4  % ) . Th ese  c as es  are 
summa r ised in G ra ph   3 25.

GR A P H   3 

ER R O R   F R EqU E N C Y   ( % )   I N  T H E   20 08   N O N-F I N A N C I A L   S A M P L E

100
90
80
70
60
50
40
30
20
10
0

BE 

FR

IE

IT

HU

NL

SI

SE

UK

Total errors (%)

Errors because of missing documents (%)

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72.  

73.  

74.  

75.  

 W h e r e a s   i n   t h e   f i n a n c i a l   s a m p l e   t h e   e r r o r s   c a n   b e   c o r r e c t e d   b y 
a   r e c o v e r y   o f   d u t i e s   i f   t h e   e r r o r s   a r e   d e t e c t e d   b e f o r e   t h e   d u t y 
amounts are time -bar red, in the non-financial sample the interest 
o f   E U   p ro d u ce r s   i s   a f fe c te d   w h e n   i m p o r t s   w i t h o u t   t h e   n e ce s s a r y 
docum ents t ake p l ace.

EF F E C T I V E N E S S   O F   E X-P O S T   AU D I T S

26  For Ireland and the United 
Kingdom, declarations of 2005 were 

selected, because the audit visits took 

place in 2008; for practical reasons 

the selection in the Netherlands 

related partly to 2007.

27  Belgium, France, Ireland, the 
Netherlands, Sweden, United 

Kingdom.

 A sample of around 30 declarations per M ember State from 2006 26 
was selec ted in order to check TOR-relevant issues, i.e. the correc t 
application of a preferential duty rate and to assess whether errors 
detec ted had b een  cor rec ted by  c us tom s.

28  Belgium, France, Ireland, Sweden, 
United Kingdom.

29  Italy, Hungary, Slovenia.

 I n six 27 of the nine audited M ember States, high er ror frequencies 
were identified. These Member States could not show that they had 
subseq uent ly   cor rec ted  any  o f  t he   e r ro r s  t h roug h  ex- post   audit s. 
Each   e r ro r  had  a  financ ial  imp ac t  an d  l ed   to  an   un d er pay m ent  of 
TOR. I n the 274 declarations checked, 49 errors were found, giving 
rise to 558 000 euro of loss of duty. These amounts are time -barred 
and therefore can no longer be recovered and are definitively lost 
for the  EU b udg et. 

 T h e   f a c t   t h a t   i n   f i v e 2 8  o f   t h e s e   s i x   M e m b e r   S t a t e s   t r a d e r s   w e r e 
u n a b l e   t o   p r o v i d e   t h e   r e q u e s t e d   c u s t o m s   d o c u m e n t a t i o n ,   e v e n 
mont h s  later,   imp l ies  that  t hese   trade r s  d id  no t  re spe c t  t he   com-
mit me nt s  t hey   made  in   the  frame wo r k  of   th e  aut ho r is ati on .  Suc h 
t ra d e r s   a re   u n re l i a b l e   a n d,   by   t h e i r   n e g l i g e nt   b e h av i o u r,   p re s e nt 
a r isk fo r TOR an d to  EU p roduce r s.  The y s h ould n ot  be al lowe d to 
use sim p lified p ro cedures.

76.  

 I n   t h e   t h r e e 2 9  M e m b e r   S t a t e s   w i t h   a n   a c c e p t a b l e   f r e q u e n c y   o f 
 e x - p o s t   a u d i t s   ( c f.   Ta b l e   5) ,   n o n e   o f   t h e   d e c l a r a t i o n s   t e s t e d   b y 
th e Co ur t ’s au dito rs  were affec te d  by  an  e r ror.

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77.  

78.  

 Gra ph  4 shows t he tot al er ro r  f re que nc y for  t h e 2 0 0 6  s am pl e an d 
t h e   p r o p o r t i o n   o f   c a s e s   t h a t   r e l a t e   t o   t h e   a b s e n c e   o f   e s s e n t i a l 
docum ents.

 These findings give reason to doubt that, in par ticular for six of the 
nine audited M ember States, impor ts under simplified procedures 
are  effe c tive ly  contro l l ed  so   as   to  pre ve nt  loss   of   f und s  to  th e   E U 
budget  o r p rej udice to E U p rodu cer s.

GR A P H   4

ER R O R   F R EqU E N C Y   ( % )   I N  T H E   20 06   F I N A N C I A L   S A M P L E

100
90
80
70
60
50
40
30
20
10
0

BE 

FR

IE

IT

HU

NL

SI

SE

UK

Total errors (%)

Errors because of missing documents (%)

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CONCLUSIONS AND 
RECOMMENDATIONS

32

79.  

 Th e   re s u l t s   o f   t h e   Co u r t ’s   a u d i t   s h ow   t h a t   s i m p l i f i e d   p ro c e d u re s 
a r e   n o t   y e t   e f fe c t i v e l y   c o n t r o l l e d   i n   t h e   m a j o r i t y   o f   t h e   a u d i t e d 
M e m b e r   S t a t e s.   A s   s u c h   t h e r e   i s   n o   r e a s o n a b l e   a s s u r a n c e   o f   t h e 
co r re c t   co l l e c t i o n   o f  TO R   o r   t h at   t ra d e r s   co m p l y   w i t h   t h e   o b l i g a -
tions der ivin g fro m the co mmon  t ra de  poli c y.

80.  

 The Commission should ensure that the framework applicable from 
20 09 o pe rates ef fec t ivel y th ro ug h out  t he  E U.

H A S  T H E  CO M M I S S I O N  D E V E LO P E D  A  S O U N D  A P P R O AC H 
F O R   C O N T R O L S   O N   S I M P L I F I E D   P R O C E D U R E S   A N D   D I D 
I T   M O N I TO R  T H E   CO R R E C T   A P P L I C AT I O N   O F   S I M P L I F I E D 
P R O C E D U R E S   A N D  T H E   CO N T R O L S  T H E R E O N ?

81.  

82.  

83.  

 The Co mmissio n has  devel op ed a soun d approa c h for  control s on 
simplifie d  p ro cedures   and  p u t  in   place   th e   re gulator y  f rame wo r k 
s u p p o r te d   by   co m p re h e n s i ve   g u i d e l i n e s,   b u t   n o t   b e fo re   t h e   e n d 
o f   2 0 0 8 .   Ce r t a i n   a s p e c t s,   s u c h   a s   t h e   u s e   o f   r i s k   a n a l y s i s   o r   c o n-
t ro l s   d u r i n g   p ro ce s s i n g   n e e d   to   b e   i m p rove d   ( s e e   p a ra gra p h s   2 2 
to 26 ).

 As simplified procedures can be manual until the end of 2010, the 
applic at io n o f an EU-w id e au to m ated  r i sk  an alysi s th at t ak es  into 
a c c o u n t  TO R   o r   c o m m o n   t r a d e   p o l i c y   i s s u e s   w i l l   o n l y   b e   m a n d a-
t o r y   f r o m   t h a t   m o m e n t .   I n   a d d i t i o n ,   M e m b e r   S t a t e s   f r e q u e n t l y 
a l l o w   p r a c t i c e s   u n d e r   t h e   LC P   w h i c h   p r e v e n t   t h e   a p p l i c a t i o n   o f 
autom ate d r isk  anal ys is b efore re le as e ( s ee  paragraph s  2 7  to 3 1 ).

 Guidelines for ex-post audits in customs are not yet complete and 
the Commission did not star t dedicated inspec tions on simplified 
procedures for impor ts until 2008. Fur ther monitoring ac tivit y has 
only re cent l y star ted (s ee p aragra ph s  3 2  to 3 8 ).

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84.  

 The  Co mmiss ion sh oul d:

- 

improve the existing regulator y framewor k and guidelines for 
simplified procedures by using the Cour t ’s control model as a 
basis,

-  monitor the implementation of this framework and guidelines 

in t he  M emb er  States, 

- 

- 

- 

develop EU-wide profiles for TOR and the common trade polic y 
and  incl u de th em in th e CR MF,

co mp l ete  t he g uidel ines for ex- po st  audi ts, an d

ta ke  t he  Co u r t' s   f i nd in gs   into  account  whe n  consider ing  fur -
th er s imp lificat ions for c ustoms  proced ure s.

D O   M E M B E R   S TAT E S   U S E   A   S O U N D   A N D   S TA N D A R D I S E D 
A P P R OAC H  F O R  CO N T R O L S  O N  S I M P L I F I E D  P R O C E D U R E S 
A N D   A R E  T H E S E   CO N T R O L S   E F F E C T I V E ?

85.  

 Member States did not apply a standardised approach for controls/
audits at the different phases of simplified procedures, e.g. before 
authorisation or ex-post and often used deficient methods for such 
co n t ro l s / a u d i t s.  Th e   Co u r t ’s   a u d i t   h a s   s h ow n   t h at   t h e i r   co nt ro l s /
a u d i t s   w e r e   f r e q u e n t l y   i n e f f e c t i v e   a n d   t h a t   M e m b e r   S t a t e s   d i d 
not  always  fo llow   t he  gu idance  prov i de d  by   th e   Com mis si on   (s ee 
paragrap h 40).

86.  

 The significant number of poor or poorly documented pre -author-
isation au dits  identified in creas e s th e r isk  th at un re liable  t ra ders 
can  operate simp l ified p rocedu re s  ( s ee  pa ragraphs  4 1   to 4 4 ).

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
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87.  

 Th e   a p p ro a c h e s   u s e d   fo r   c h e c k s   d u r i n g   t h e   p ro ce s s i n g   o f   s i m p l i-
fied pro ce dures fo r the rel ease of  g oods  were var ie d and  of te n of 
poor qu alit y (se e p aragraph s 4 5  to 5 6 ) .

- 

- 

The frequent and unjustified use of ‘super-simplifications’ (no -
tification waivers) in the framework of the LCP and the general 
a b s e n c e   o f   a u t o m a t e d   r i s k   p ro f i l e s   p re ve n t e d   c h e c k s   b e fo re 
re l e a s e   a n d   i n c re a s e d   t h e   r i s k   o f   i m p o r t s   n o t   re s p e c t i n g   t h e 
obligations deriving from common trade polic y measures and/
or  lo s s o f TOR.

Few documentar y checks on supplementar y declarations and, 
i n   p a r t i c u l a r,   t h e   f a c t   t h a t   s i m p l i f i e d   d e c l a r a t i o n s / e n t r i e s   i n 
t h e   t r a d e r s’  re c o rd s   we re   n o t   s y s t e m a t i c a l l y   re c o n c i l e d   w i t h 
sup p le mentar y dec l arat ions  inc re ase d  th e se  r i sks.

88.  

89.  

 Seven out of nine Member States audited used a deficient or par tly 
deficient audit methodology including poor planning. I n eight out 
o f   n i n e   M e m b e r   S t a t e s   a u d i t e d ,   t h e   f r e q u e n c y   o f   e x - p o s t   a u d i t s 
did not consider sufficiently the risk of time -barring of duties (see 
paragrap hs 57 to 6 2) .

 T h e   a b s e n c e   o f   c h e c k s   b e f o r e   a n d   a f t e r   r e l e a s e   a n d ,   i n   p a r t i c u -
lar, th e ab se nce  of  go o d q ual it y  an d  s uf f ic i entl y  freque nt  ex-po st 
 audits encourage trader negligence. This in turn increases the risk 
o f   i r r e g u l a r i t i e s   r e m a i n i n g   u n d e t e c t e d ,   l e a d i n g   t o   a   l o s s   o f  TO R 
o r   i m p o r t s   t h at   d o   n o t   re s p e c t   t h e   o b l i g at i o n s   d e r i v i n g   f ro m   t h e 
commo n t rad e pol ic y (s ee p aragra phs  4 5  to 6 2 ).

90.  

 The high number of er rors in the samples of customs declarations 
show  fo r s impl ified p ro ced ures  t hat  ( se e  para graph s 6 3  to 7 8 ) :

(a )  ch eck s b efo re  releas e are not ef fe c ti ve,

(b) 

imp o r ts  o f g o o ds requir in g l icen ces  or  sim ila r  do c um ent s are 
d i f f i c u l t   to   m o n i to r   i f   n o   re l i a b l e   I T   o n l i n e   m a n a g e m e nt   i s   i n 
place,

(c)  many  t rade rs  did  no t  res pe c t  th e  com mi tm e nt s  t he y   m ade   in 
th e  f ram ewo r k   of   the  au thor isat i on  to  use   s impl if ie d  proce d-
ures,  and

(d)  ex-post audits are not frequent enough in the major it y of the 
a u d i t e d   M e m b e r   S t a t e s   a n d   d i d   n o t   a d e q u a t e l y   p r e v e n t   o r 
de tec t  e r rors.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
 
 
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91.  

 The  Co mmiss ion sh oul d:

- 

- 

- 

- 

- 

urge Member States to implement without delay the recently-
created regulator y framework on simplified procedures includ-
i n g   a   c o m m o n   a p p r o a c h   f o r   c h e c k s   a n d   a u d i t s   t h r o u g h o u t 
t h e   p ro ce d u re,   i n   l i n e   w i t h   t h e   co nt ro l   m o d e l   d e f i n e d   by   t h e 
Co ur t,

c r i t i c a l l y   r e v i e w   t h e   M e m b e r   S t a t e s’  p r a c t i c e   o f   a u t h o r i s i n g 
‘super simplifications’ (notification waivers) and provide guid-
a n c e   o n   t h i s   i s s u e ,   i n   p a r t i c u l a r,   r e g a r d i n g   g o o d s   r e q u i r i n g 
custom s inter vent ion  b efore rele as e,

e n co u ra g e   a l l   M e m b e r   S t a te s   to   co m p u te r i s e   t h e   p ro ce s s i n g 
of simplified procedures including the elec tronic management 
(onl ine  w r it ing - dow n   at  t he  mom ent  o f  rele as e  of  t he   g oods ) 
of licences and similar documents and the use of IT-based risk 
pro fil es cover ing  TOR  and comm on  t rad e  pol i c y  is sue s,

invite M emb er States  to enhan ce tra i nin g for  t rad er s  in  orde r 
to raise traders’ awareness for their obligations and responsi-
bil ities  w hen u sin g simp l ified proce dure s, an d 

pro mo te  p er fo r mance  measurem ent  an d   be nc h ma r k i ng   exer-
cis es  be t we en  M emb er  States,  en cou ragi ng   th e m  to  e nh an ce 
th eir p ra c t ice s for  t he co ntro l of  si mpli f i ed  proce dure s.

 This  re po r t   was  ado p ted  by  t he  Cour t  o f   Audi tor s   in  Lu xe mbo urg 
at it s  m eet ing o f 25 M arc h 2010 .

Fo r  th e  Co u r t  o f  Au d ito r s

Vítor Manuel da Silva Caldeira 
Presi d e nt

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

 
 
36

A N N E X   I

O V E R V I E W   O N  T H E   C H A R AC T E R I S T I C S   O F 
S I M P L I F I E D   P R O C E D U R E S 1

A r t i c l e   7 6   o f   t h e   C o m m u n i t y   C u s t o m s   C o d e 2  ( C C C )   i s   t h e   l e g a l 
basis fo r simp lified p ro cedures.  Ar t ic le  7 6( 1 ) (a)  to ( c) se ts  out t he 
cha rac ter is tics  o f th ree different  proce du res :

(a)  th e in comp le te dec l arat ion proced ure  (o ut sid e  audi t s cope );

(b)  th e s imp lified dec l aration  p roce dure;

(c)  th e l o cal c le arance p ro cedu re.

1  See end of Annex for a schematic 
presentation.

2  Council Regulation (EEC)  
No 2913/92 (OJ L 302, 19.10.1992, 

p. 1), as amended.

3  Commission Regulation (EEC)  
No 2454/93 (OJ L 253, 11.10.1993,  

p. 1), as amended.

A r t i c l e   2 5 3   C C I P   ( t h e   C C C ’s   i m p l e m e n t i n g   p r o v i s i o n s 3)   g i v e s   a 
g e n e r a l   d e f i n i t i o n   o f   t h e   p u r p o s e   a n d   t h e   c h a r a c t e r   o f   e a c h   o f 
t h e   t h re e   s i m p l i f i e d   p ro c e d u re s.   M o re   s p e c i f i c a l l y   re g a rd i n g   t h e 
s u b j e c t   o f   t h e   a u d i t   —   t h e   re l e a s e   to   f re e   c i rc u l a t i o n   p ro ce d u re   — 
deta ils  are set  o u t in t he CC IP, Ar t ic le s  2 5 4  to  2 67 .

T H E   I N C O M P L E T E   D E C L A R AT I O N   P R O C E D U R E   I S   O U T S I D E   T H E 
 AUDI T   SCO P E  A ND  IS  N OT  FU RT HE R  D E VELO P ED  IN   TH IS  A NN EX

I .  SI M P L I F I E D   D E C L A R AT I O N   P R O C E D U R E   
( A R T I C L E S  253 ; 253a – 253m ;  260 – 262  CC I P )

A r t i c l e   2 5 3 ( 2 )   CC I P :  ‘ T h e   s i m p l i f i e d   d e c l a r a t i o n   p r o c e d u r e   s h a l l 
e n a b l e   g o o d s   t o   b e   e n t e r e d   fo r   t h e   c u s t o m s   p r o c e d u r e   i n   q u e s-
tion  on  p rese nt ation  of   a  s imp l if ie d  de clarat ion   wi th   s ubse quent 
p r e s e n t a t i o n   o f   a   s u p p l e m e n t a r y   d e c l a r a t i o n   w h i c h   m a y   b e   o f   a 
gen era l, p er io dic o r rec ap itul ative  n ature,  as  appropr iate.’

Ar t icle 7 6(1) (b)  CCC s pec ifies:  …‘c us tom s aut hor it ie s sh all…grant 
p e r m i s s i o n   f o r… a   c o m m e r c i a l   o r   a d m i n i s t r a t i v e   d o c u m e n t ,   a c -
co m p a n i e d   by   re q u e s t   fo r   t h e   g o o d s   to   b e   p l a ce d   u n d e r   t h e   c u s-
toms procedure  in  q ues tion, to be  lod ge d i n  place of  t he  d ec la ra-
tion…’. 

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A N N E X   I

The  pro cedu re:

(a )  i s   s u b j e c t   t o   p r i o r   a u t h o r i s a t i o n   ( A r t i c l e s   2 5 3 ,   2 5 3 a – 2 5 3 m , 
260–262 CCIP). Customs are to check thoroughly the reliabilit y 
o f   t h e   a p p l i c a nt   a n d   to   d e te r m i n e   a l l   p e r t i n e nt   d e t a i l s   i n   t h e 
auth or isatio n;

(b)  incl u des  t he p resentat ion of  go od s  to  c us tom s.

The procedure allows for various possibilities, but the t ypical case 
is as fol l ows:

1)  The trader presents goods to customs and lodges either a sim-
p l i f i e d   d e c l a r a t i o n   f o r m   o r   a   c o m m e r c i a l   d o c u m e n t   ( e . g .   a n 
invo ice) inste ad of a det ail ed st an dard d ec la rat ion .

2)   T h e   u s u a l   p r o c e s s i n g   o f   r e l e a s e   t o   f r e e   c i r c u l a t i o n   d e c l a r a-
tions is car r ied out (decisions on checks on fiscal or non-fiscal 
 issue s).

3)  At   t h e   e n d   o f   t h e   p e r i o d   a gre e d   i n   t h e   a u t h o r i s at i o n   ( u s u a l l y 
a   m o n t h ) ,   t h e   t r a d e r   l o d g e s   t h e   s u p p l e m e n t a r y   d e c l a r a t i o n , 
which contains all details (customs valuation, weight, etc.) for 
e a c h   i n d i v i d u a l   s i m p l i f i e d   d e c l a r a t i o n   i n   o r d e r   t o   b e   a b l e   t o 
c a l c u l a t e   t h e   d u t i e s   f o r   t h e   t o t a l i t y   o f   a l l   s i m p l i f i e d   d e c l a r -
atio ns  (tot al  du t y amou nt ) in  th e  pe r io d.

4)  Th e   t o t a l   d u t y   a m o u n t   i s   e n te re d   i n   t h e   a c c o u n t s   o f   c u s to m s 
wit hin  five   days   of  the  referen ce  per i od,   i .e.  th e  month   i n   th e 
e x a m p l e   ( c f.   A r t i c l e   2 1 8 ( 1 )   CCC )   a n d   p a i d   a c c o r d i n g   t o   A r t -
i c l e   2 2 7   CCC ,   i . e.   by   t h e   1 6 t h   d ay   o f   t h e   m o n t h   fo l l ow i n g   t h e 
refere nce  month .

5)  Po s t - e v e n t   c o n t r o l   m a y   b e   c a r r i e d   o u t   i n   t h e   fo r m   o f   a d   h o c 
c h e c k s   o n   t h e   s u p p l e m e n t a r y   d e c l a r a t i o n   o r   b y   i n - d e p t h   e x -
post audits at the trader ’s premises, including the trader ’s com-
merc ial  do cuments  an d acco unts.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N EX   I

I I .  LO C A L   C L E A R A N C E   P R O C E D U R E   ( AR T I C L E S  253 ( 3 ) ; 
263 – 267  CC I P )

A r t i c l e   2 5 3 ( 3 ) :  ‘ T h e   l o c a l   c l e a r a n c e   p r o c e d u r e   s h a l l   e n a b l e   t h e 
 e n t r y   o f   g o o d s   fo r   t h e   c u s t o m s   p ro c e d u re   i n   q u e s t i o n   to   b e   c a r-
ried out at the premises of the person concerned or at other places 
design ate d or ap p roved by t he c us tom s a ut ho r it ie s.’

Ar t i c l e   7 6 ( 1 ) ( c )   CCC   s p e c i f i e s : . . .‘c u s to m s   a u t h o r i t i e s   s h a l l. . . . gra nt 
p e r m i s s i o n . . . f o r. . . t h e   g o o d s   t o   b e   e n t e r e d   f o r   t h e   p r o c e d u r e   i n 
q u e s t i o n   b y   m e a n s   o f   a n   e n t r y   i n   t h e   r e c o r d s ;   i n   t h i s   c a s e ,   t h e 
customs authorities may waive the requirement that the declarant 
present s t he g ood s  to  cu sto ms.’

The proce dure:

(a)  i s   s u b j e c t   t o   p r i o r   a u t h o r i s a t i o n   ( A r t i c l e s   2 5 3 ,   2 5 3 a – 2 5 3 m ; 
263–267 CCIP). Customs are to check thoroughly the reliabilit y 
o f   t h e   a p p l i c a nt   a n d   to   d e te r m i n e   a l l   p e r t i n e nt   d e t a i l s   i n   t h e 
auth or isatio n.

(b)  i n c l u d e s ,   i n   g e n e r a l ,   a   n o t i f i c a t i o n   t o   c u s t o m s   o f   t h e   a r  r i v a l 
o f   g o o d s   a t   t h e   t r a d e r s   p r e m i s e s   ( o r   a n y   o t h e r   d e s i g n a t e d 
p l a c e   fo r   t h a t   p u r p o s e )   a n d   t h e   i n t e n t i o n   t o   h a v e   t h e   g o o d s 
rel ea sed.

The procedure allows for various possibilities, but the t ypical case 
is as fol l ows:

1)  T h e   t r a d e r   re c e i ve s   t h e   g o o d s   a t   h i s   p re m i s e s,   u s u a l l y   u n d e r 
another customs regime for which he is already authorised (e.g. 
tra nsit ).

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I

2)  D e p end ing  on  the degree o f simpli f ic at ion ,  th e  trade r  t h en :

- 

- 

e i t h e r   n o t i f i e s   c u s t o m s   a b o u t   h i s   i n t e n t i o n   t o   h a v e   t h e 
g o o d s   r e l e a s e d ,   e n t e r s   t h e   p a r t i c u l a r s   r e f e r r i n g   t o   t h e 
g oo ds  into his acco untin g re cord s  and  wa it s unti l c us toms 
d e c i d e   w h e t h e r   t h e y   w i s h   t o   c a r r y   o u t   c h e c k s   b e f o r e   r e -
l eas e,  or 

d i re c t l y   e nte r s   t h e   p a r t i c u l a r s   re fe r r i n g   to   t h e   g o o d s   i n to 
h i s   a cco u nt i n g   re co rd s,   w h i c h   c a n   h ave   t h e   e f fe c t   o f   a   re -
l eas e for fre e circu l atio n.

3)  T h u s ,   d e p e n d i n g   o n   t h e   d e g r e e   o f   s i m p l i f i c a t i o n ,   c u s t o m s 
m a y   o r   m a y   n o t   h a v e   t h e   p o s s i b i l i t y   t o   c h e c k   g o o d s   b e f o r e 
rel eas e.

4)   At   t h e   e n d   o f   t h e   p e r i o d   a gre e d   i n   t h e   a u t h o r i s at i o n   ( u s u a l l y 
a   m o n t h ) ,   t h e   t r a d e r   l o d g e s   t h e   s u p p l e m e n t a r y   d e c l a r a t i o n , 
which contains all details (customs valuation, weight, etc.) for 
eac h  individu al   account  entr y  in   o rde r   to  be   able   to   c alc u late 
t h e   d u t i e s   f o r   t h e   t o t a l i t y   o f   a l l   a c c o u n t   e n t r i e s   ( t o t a l   d u t y 
am ou nt ) in t he p er io d.

5)  Th e   t o t a l   d u t y   a m o u n t   i s   e n te re d   i n   t h e   a cco u n t s   o f   c u s to m s 
wit hin  five  days  o f  t he  reference   pe r iod,  i. e.   t he   m onth   i n   th e 
e x a m p l e   ( c f.   A r t i c l e   2 1 8 ( 1 )   CCC )   a n d   p a i d   a c c o r d i n g   t o   A r t -
i c l e   2 2 7   CCC ,   i . e.   by   t h e   1 6 t h   d ay   o f   t h e   m o n t h   fo l l ow i n g   t h e 
refere nce  month .

6)  Po s t - e v e n t   c o n t r o l   m a y   b e   c a r r i e d   o u t   i n   t h e   fo r m   o f   a d   h o c 
c h e c k s   o n   t h e   s u p p l e m e n t a r y   d e c l a r a t i o n   o r   b y   i n - d e p t h   e x -
post audits at the trader ’s premises, including the trader ’s com-
merc ial  do cuments  an d acco unts.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N EX   I

SC H E M AT I C   P R E S E N TAT I O N   O F   T H E   S I M P L I F I E D   D E C L A R AT I O N   A N D 
T H E   L O C A L   C L E A R A N C E   P R O C E D U R E   F O R   R E L E A S E   O F   G O O D S   F O R 
F R E E   C I R C U L AT I O N

Phase
Type of procedure

Phase 1 
Authorisation

Simplified declaration procedure

Local clearance procedure

Formal procedure (Application g Authorisation):
-  authorisation prior to the procedure 
-  check of trader reliability and further conditions by 

Formal procedure (Application g Authorisation):
-  authorisation prior to the procedure 
-  check of trader reliability and further conditions by 

customs

customs

-  details of processing are specified in authorisation

-  details of processing are specified in authorisation

Phase 2 
Clearance

Trader: 
-  presents goods to customs 
- 

lodges simplified declaration (e.g. invoice) 

Customs:
-  register the simplified declaration
-  decides on whether to carry out a check 
-  release the goods for free circulation

Trader: 
-  receives/has goods at his premises (or the desig-

nated place)  

-  notifies customs of his intention to have the goods 
released for free circulation and enters declaration 
particulars into his records (notification waiver 
 possible)

Customs:
-  receive (or not) notification by the trader
-  decides on whether to carry out a check (if still 

 possible)

-  release goods (if not already released by the trader 

himself) 

Phase 3 
Supplementary 
declaration

Trader: 
- 

lodges supplementary declaration (= summary of 
all simplified declarations during the period)

-  pays aggregate amount of duties due

Trader: 
- 

lodges supplementary declaration (= summary of 
all record entries during the period)
-  pays aggregate amount of duties due

Customs:
-  enter duty amount into the accounts
-  decides on whether to carry out a post-event check

Customs:
-  enter duty amount into the accounts
-  decides on whether to carry out a post-event check

Phase 4  
Ex-post audit

Trader: 
-  holds documentation at customs’ disposal

Trader: 
-  holds documentation at customs’ disposal

Customs:
-  decides on whether to carry out an ex-post audit

Customs:
-  decides on whether to carry out an ex-post audit

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I I

E C A - CO N T R O L   M O D E L   F O R   S I M P L I F I E D 
P R O C E D U R E S

1.  CR I T E R I A   F O R   CO N T R O L S   B E F O R E   AU T H O R I S I N G   A 
T R A D E R 

(a )  I t   s h o u l d   b e   c h e c k e d   w h e t h e r   t h e   t r a d e r   h a s   a n   a p p r o p r i a t e 
record of compliance with customs requirements, a satisfactor y 
and  rel iabl e (I T )  s ys tem fo r m anagin g  h is  co mme rc ia l records, 
proven financial solvenc y and that it is possible to check com-
pli ance w it h imp or t p rohib it ion s  or   re st r ic ti on s.

(b)  T h e   a d m i n i s t r a t i v e   o r g a n i s a t i o n   a n d   t h e   i n t e r n a l   c o n t r o l s   o f 
the  t rad er sho uld  b e au dited ; th is  aud it  sh ould in c lude  a vi si t 
to  the  trader ’s p remis es.

(c)  Th e   r i s k s   a f fe c t i n g   t h e   t ra d e r ’s   b u s i n e s s   s h o u l d   b e   i d e n t i f i e d 
and assessed during the audit and covered by appropriate con -
trol measures; a control plan/recommendation addressing the 
rem aining  r isk s shou l d b e es tabli s he d  for   e ac h  trade r.

(d)  The  res ul ts  of  t he au dit sh ould be  for m alis ed  in  a  re por t.

(e)  Tr a d e r s   s h o u l d   b e   p ro p e r l y   a d v i s e d   d u r i n g   t h e   a u t h o r i s a t i o n 
p ro c e s s   a n d   m a d e   a w a re   o f   t h e i r   o b l i g a t i o n s   a n d   o f   t h e   c u s-
toms  r isk s affec ting  their  t rade.

(f )   Authorisations should be a formal and explicit written commit -
me nt   b et wee n  c us to ms  an d  t rad er   de f in i ng   th e ir   coope rat ion 
a n d   t h e   r i g h t s   a n d   o b l i g a t i o n s   o f   e a c h   p a r t y,   i n c l u d i n g   t h e 
t ra d e r ’s   o b l i g at i o n s   to   n o t i f y   a ny   c h a n g e s   a r i s i n g   i n   h i s   b u s i-
n e s s   a n d   o r g a n i s a t i o n   a n d   t o   n o m i n a t e   a   r e p r e s e n t a t i v e   f o r 
custom s matters.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N EX   I I

2.  CR I T E R I A   F O R   CO N T R O L S 1 W H E N   P R O C E S S I N G 
S I M P L I F I E D   P R O C E D U R E S  i.e.  O N   S I M P L I F I E D 
D E C L A R AT I O N S / R E CO R D   E N T R I E S   A N D   
O N   S U P P L E M E N TA R Y   D E C L A R AT I O N S

(a)  A   m i n i m u m   n u m b e r   o f   r i s k - b a s e d   p hy s i c a l   a n d   d o c u m e n t a r y 
c h e c k s   b e f o r e   r e l e a s e   i n   o r d e r   t o   m a i n t a i n   a n   u n c e r t a i n t y 
f a c t o r   fo r   t h e   t r a d e r,   d e t e c t   i r re g u l a r   i m p o r t s   a n d   a vo i d  TO R 
 un der p aym ent s  s ho u l d be car r ied  o ut.

(b)  S u b s t a n t i v e   d o c u m e n t a r y   c h e c k s   o n   s u p p l e m e n t a r y   d e c l a r -

atio ns  sho ul d be c ar r ied o ut  for  th e  sam e  pur pos e.

(c)  A n   a u to m ate d   re co n c i l i at i o n   b e t we e n   s u p p l e m e nt a r y   d e c l a r -
a t i o n s   a n d   s i m p l i f i e d   d e c l a r a t i o n s / e n t r i e s   i n   t h e   t r a d e r ’s 
re co rd s   e n s u r i n g   t h e   co m p l e te n e s s   o f   s u p p l e m e nt a r y   d e c l a r-
atio ns  sho ul d be c ar r ied o ut.

(d)  Physical and documentar y checks should be based on risk ana-
lysis, using appropriate automated data processing techniques 
incl u ding  a random  el ement.

(e)  R e s u l t s   o f   s u c h   c h e c k s   s h o u l d   b e   p r o p e r l y   r e c o r d e d   a n d   fe d 
b a c k   i n t o   t h e   r i s k   m a n a g e m e n t   s y s t e m ;   re g u l a r   p e r fo r m a n c e 
me asu rement   under t aken  by  Cus tom s  s h oul d  e ns ure   th at   r i sk 
pro fil es rem ain  effec tive and  up  to  date.

1  The minimum number of checks 
before release and on supplementary 

declarations should depend on 

the degree of risk associated with 

the imports concerned. For traders 

having only low-risk imports, 

an uncertainty factor should 

nevertheless be maintained by 

carrying out random checks.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I I

3.  CR I T E R I A   F O R   E X-P O S T   AU D I T S 2  O N   S I M P L I F I E D 
P R O C E D U R E S

(a )  R e g u l a r   a n d   p l a n n e d   e x - p o s t   a u d i t s   s h o u l d   b e   c a r r i e d   o u t , 
b a s e d   o n   s o u n d   a n d   s t a n d a rd i s e d   a u d i t   m e t h o d o l o g y   t a k i n g 
into account the trader ’s business risks and time -barring risks, 
some  of  t he m s elec ted at random.

(b)  A u d i t s   s h o u l d   t a r g e t   t r a n s a c t i o n s   o r   s p e c i f i c   s u b j e c t s   ( e . g . 
c u s t o m s   v a l u a t i o n ) ,   s y s t e m s   i n c l u d i n g   I T   s y s t e m s ,   o r   a s s e s s 
whe th er a trade r s til l  meets  th e cond it ion s  for  t h e us e of si m-
plifie d p roce dures.

(c)  Audit  finding s s ho ul d b e fo r malis e d i n  a re por t a nd  s yste mat-
i c a l l y   fo l l o w e d - u p ;   a u d i t   r e s u l t s   s h o u l d   b e   fe d   b a c k   i n t o   t h e 
r isk m anag em ent  s ystem .

(d)  Q u a l i t y   a s s u ra n ce   m e a s u re s   ( e. g.   t ra d e r   p e r fo r m a n ce   o r   co m-
pliance measurement) should be implemented and trader self-
ass es sment  s ho ul d b e p ro mo ted.

2 

In order to properly address the 

risk of time-barring of duties, ex-post 

audits targeting transactions should 

be carried at least every three years. 

The number of transactions to be 

checked in each ex-post audit should 

depend on the risks involved. A 

systems audit or an audit to assess 

whether the trader still meets the 

conditions for the use of simplified 

procedures can be carried out 

at longer intervals, but is always 

necessary if a system change (IT, 

other) occurs.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I I I

O V E R V I E W   O F  T H E   O B S E R VAT I O N S   F O R  T H E   N I N E   AU D I T E D   
M E M B E R   S TAT E S

IT

HU

NL

SI

20

16

18

17

SE

22

UK

20

IE

7

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Control model standards

Number of trader files reviewed

BE 

FR

17

20

Pre-authorisation audits

Was an audit at the premises of the trader carried out, an 
audit report made and available?

Were the administrative organisation and internal controls 
of the trader assessed?

Were accounting and IT systems checked?

Were the legal requirements of Articles 261(2) and 264(2) 
CCIP checked (e.g. absence of serious offences)?

Was the trader’s financial solvency checked?

Was a risk assessment of the trader carried out?

Did the risk assessment/audit result in a control recommen-
dation (plan)?

Did the authorisation process contain assurance elements 
(e.g. training, info, coordinators)?

Control during processing — checks before release

Were simplification practices for LCP (notification waiver) 
granted in accordance with the legislation?

Was a minimum of checks before release on TOR/common 
trade policy aspects actually made?

Were automated risk profiles with TOR/common trade policy 
relevance applied?

Was there an automated random element included in the 
risk management?

Was there a follow-up of risk-relevant issues (e.g. perform-
ance measurement of risk profiles, feedback)?

N.B.:   

 satisfactory;  

 partly satisfactory;  

 not satisfactory; N/A: not applicable.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I I I

Control model standards

Number of trader files reviewed

BE 

FR

17

20

IE

7

IT

HU

NL

SI

20

16

18

17

SE

22

UK

20

Control during processing — checks on  
supplementary declarations

Are supplementary declarations generally processed via IT?

Was a minimum of substantive documentary checks actually 
made?

Were automated risk profiles with TOR/common trade policy 
relevance applied?

Was there an automated random element included in the 
risk management?

Was there an automated reconciliation between supplemen-
tary and simplified entries?

N/A

N/A

N/A

Was there a systematic manual reconciliation between 
 supplementary and simplified entries?

Was there a follow-up of  risk relevant issues (e.g. perform-
ance measurement of risk profiles, feeding back)?

Ex-post audits

Are ex-post audits based on sound audit methodology (audit 
tools, coherent approach)?

Do these audits include systems, also IT systems?

Do these audits include the continued respect of conditions 
for authorisation?

Do these audits include substantive testing of transactions 
(including commercial accounts)?

Is the audit frequency sufficient to take into account the risk 
of time-barring?

% of traders, which were not audited frequently enough to 
avoid time-barring

Is there a follow-up of audit reports (management control, 
feeding back of information)?

N/A

N/A

71

70

57

15

6

39

18

91

90

N.B.:   

 satisfactory;  

 partly satisfactory;  

 not satisfactory; N/A: not applicable. 

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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A N N E X   I V

O V E R V I E W   O N   E R R O R S   I N  T H E   S A M P L E S 

BE 

FR

IE

IT

HU

NL

SI

SE

UK

2008 financial sample

Number of transactions reviewed

31

32

20

30

33

30

30

31

30

No ‘issued retrospectively’ indicated on preferential  
document, where necessary

No direct transport evidenced

No document(s) provided

Other substantive error

Total number of errors

Total errors (%) for the 2008 sample — financial

Errors (%) because of missing essential documents

2008 non-financial sample

Number of transactions reviewed

Attribution not directly after globalisation period/not 
endorsed by customs

No document(s) provided

Other substantive error

Total number of errors 

Total errors (%) for the 2008 sample – non-financial

Errors (%) because of missing essential documents

3

1

0

1

5

16

3

60

9

23

12

44

73

38

2

1

0

1

4

13

3

57

13

6

7

26

46

11

0

0

8

0

8

40

40

6

0

6

0

6

100

100

0

1

0

0

1

3

3

62

10

0

1

11

18

0

0

0

1

1

2

6

3

32

2

0

0

2

6

0

2

0

0

0

2

7

0

61

0

18

1

19

31

30

0

0

0

0

0

0

0

0

3

0

3

6

19

10

0

1

0

1

2

7

3

30

58

60

0

0

2

2

7

0

0

5

2

7

12

9

0

0

6

6

10

0

N.B.: Member States were invited to provide any missing documentation in their replies to the Court’s statements of preliminary findings. Where they were unable to 
deliver the required documents, this was considered to be an error.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

47

A N N E X   I V

BE 

FR

IE

IT

HU

NL

SI

SE

UK

2006 financial sample

Number of transactions reviewed

34

33

24

33

29

30

30

31

30

No ‘issued retrospectively’ indicated on preferential docu-
ment, where necessary

No direct transport evidenced

No document(s) provided

Other substantive error

Total number of errors

Total errors (%) for the 2006 sample — financial

Errors (%) because of missing essential documents

1

4

1

4

10

29

15

0

8

0

3

11

33

24

0

0

7

0

7

29

29

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

3

4

13

0

0

0

0

0

0

0

0

1

8

0

2

11

35

26

0

2

3

1

6

20

17

N.B.: Member States were invited to provide any missing documentation in their replies to the Court’s statements of preliminary findings. Where they were unable to 
deliver the required documents, this was considered to be an error.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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REPLY OF THE 
COMMISSION

EXECUTIVE SUMMARY

I I.
The Authorised Economic Operator (AEO) 1 
h a s   t o   f u l f i l   v e r y   s t r i n g e n t   c o m p l i a n c e 
cr iter ia and thus has easier access to sim-
plified customs procedures. When an AEO 
a p p l i e s   f o r   a   s i m p l i f i e d   p r o c e d u r e ,   c u s-
t o m s   w i l l   c h e c k   t h e   a d d i t i o n a l   r e q u i r e -
m e n t s   b u t   w i l l   n o t   c h e c k   a g a i n   t h e   c r i-
t e r i a   a l r e a d y   c h e c k e d   w h e n   A E O   s t a t u s 
w a s   g r a n t e d.  T h e   A E O   a u d i t   a n d   a u t h o r -
i s a t i o n   p r o c e s s   i s   v e r y   t h o r o u g h ;   a f t e r 
a u t h o r i s a t i o n ,   t h e   A E O   i s   a l s o   s u b j e c t   to 
clos e monitor ing by customs.

T h e   C o m m i s s i o n ’s   i n t e n t i o n   h a s   b e e n 
t o   i m p r o v e   a n d   h a r m o n i s e ,   a t   E u r o -
p e a n   l e v e l ,   t h e   l e g a l   r u l e s   o n   s i m p l i f i e d 
p ro ce d u re s   fo r   re l e a s i n g   g o o d s   b a s e d   o n 
t h e   r e l i a b i l i t y   o f   t h e   t r a d e r,   m i n i m i s i n g 
pre - clearance controls before release and 
re p l a c i n g   t h e m   w i t h   m o re   e f f i c i e nt   p o s t-
audit controls.

I V.  secon d  indent
U n d e r   t h e   C o m m u n i t y   R i s k   M a n a g e -
m e n t   F r a m e w o r k   t h e   M e m b e r   S t a t e s 
a r e   o b l i g e d   t o   e xc h a n g e   a n d   s h a r e   r i s k -
r e l a t e d   i n f o r m a t i o n   i n   e l e c t r o n i c   f o r m , 
including r isks related to Traditional O wn 
r e s o u r c e s   ( T O R )   a n d   C o m m u n i t y   t r a d e 
p o l i c y   r i s k s ,   i n   a c c o r d a n c e   w i t h   A r t i c l e 
4 g( 2)  of th e Customs Code I mple m enti ng 
Provisions.

I V.  thi rd  indent
A r t i c l e   1 3 ( 2 )   o f   t h e   Co m m u n i t y   Cu s t o m s 
Co d e   o b l i g e s   c u s t o m s   a u t h o r i t i e s   t o   u s e 
a u t o m a t e d   d a t a   p r o c e s s i n g   t e c h n i q u e s 
f o r   t h e   p u r p o s e   o f   r i s k   a n a l y s i s .   I n   a 
paper-based environment it is difficult to 
e f f i c i e nt l y   a p p l y   a u to m ate d   r i s k   a n a l ys i s. 
H owe ve r,   a l re a d y   n ow   a   l a rg e   p ro p o r t i o n 
of customs declarations is made elec tron-
ically.

1  The AEO status was already introduced with the Security 
Amendment to the Code (Regulation 648/2005) and fully 

implemented as of 1 January 2008.

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V. fo ur t h ind ent
E U   l e g i s l a t i o n   d o e s   n o t   p r e s c r i b e   h o w 
M e m b e r   S t a t e s   s h o u l d   o r g a n i s e   t h e i r 
c u s t o m s   c o n t ro l   a c t i v i t i e s   fo r   s i m p l i f i e d 
p ro ce d u re s.  Th i s   m e a n s   t h at   t h e   M e m b e r 
States are responsible for putting in place 
a n   e f f i c i e n t   c u s t o m s   c o n t ro l   f r a m e wo r k , 
i n c l u d i n g   e f f e c t i v e ,   r i s k - b a s e d ,   e x - p o s t 
a u d i t s .   I n   t h e   c o u r s e   o f   i t s   TO R   i n s p e c -
t i o n s   t h e   Co m m i s s i o n   h a s   a l s o   o b s e r ve d 
we a k n e s s e s   i n   t h e   f re q u e n c y   a n d   q u a l i t y 
o f   s o m e   M e m b e r   S t a t e s ’  e x - p o s t   a u d i t s 
a n d   h a s   a s k e d   t h e s e   M e m b e r   S t a t e s   t o 
t a k e   re m e d i a l   m e a s u re s   a n d   i s   fo l l ow i n g 
up their ac tion. The Commission will con-
t i n u e   t o   v e r i f y   c u s t o m s   c o n t r o l   a s p e c t s 
i n   i t s   f u t u r e   TO R   i n s p e c t i o n s .   A   n u m b e r 
o f   M e m b e r   S t a t e s   a r e   c u r r e n t l y   r e v i e w -
i n g   t h e i r   c o n t ro l   p ro c e d u re s,   i n   o rd e r   t o 
improve them and adapt them to an envir-
o n m e nt   w h e re   s i m p l i f i e d   p ro ce d u re s   a re 
being increasingly used. The Commission 
h a s   i s s u e d   t h e   Cu s t o m s   a u d i t   g u i d e   a n d 
r e c o m m e n d e d   t h a t   t h e   M e m b e r   S t a t e s 
u s e   i t .   Tr a i n i n g   a n d   m o n i t o r i n g   a c t i o n s 
o n   s i m p l i f i e d   p r o c e d u r e s   w i l l   f o c u s   o n 
the control strategy of the author isations 
for sim plified procedures.

V II .  first  ind ent
T h e   C o m m i s s i o n   w i l l   t a k e   i n t o   a c c o u n t 
t h e   C o u r t ’s   f i n d i n g s   w h e n   c o n s i d e r i n g 
fur ther simplifications of customs proced-
ures.

IV. four th inde nt
T h e   C o m m i s s i o n   h a s   a l s o   e x a m i n e d 
a s p e c t s   o f   s i m p l i f i e d   p ro ce d u re s   p r i o r   to 
20 08 in  th e co urse o f its in sp ec ti on s,  e. g. 
E l e c t ro n i c   Cu s to m s   D e c l a rat i o n s   i n   2 0 0 4 , 
Cu s t o m s  Wa re h o u s i n g   i n   2 0 0 5   a n d  Tr a n-
s i t   i n   2 0 0 6 .   I t   h a s   a l s o   e x a m i n e d   c o n t ro l 
a s p e c t s   o f   s i m p l i f i e d   p r o c e d u r e s   i n   i t s 
i n s p e c t i o n   o f   t h e   Cu s to m s   Co nt ro l   S t rat-
egy in 20 09 .

IV. fif th  inde nt
Th e   Co m m i s s i o n   w i l l   re v i e w   t h e   Cu s to m s 
Au d i t   G u i d e   to   co n s i d e r   f u r t h e r   d e ve l o p -
m e n t   o f   c o m m o n   s t a n d a r d s   f o r   e x - p o s t 
a u d i t s   a n d   w i l l   c o n s i d e r   i n   t h e   C u s t o m s 
Code  Commit tee t he iss ue o f stan d ards.

V. fi rst  inde nt
T h e   Co m m i s s i o n   wo u l d   e x p e c t   t h a t   w i t h 
the introduc tion of mandator y audits the 
q u a l i t y   o f   a u d i t s   a n d   o f   t h e   d o c u m e n t a-
tion w il l imp rove.

V. thi rd inde nt
I n   t h e   co u r s e   o f   i t s   i n s p e c t i o n s   t h e   Co m-
m i s s i o n   h a s   fo u n d   e xce s s i ve   u s e   o f   n o t i -
f i c a t i o n   w a i v e r   i n   a   n u m b e r   o f   M e m-
b e r   S t a t e s .   I t   h a s   a s k e d   t h o s e   M e m b e r 
S t a t e s   t o   a m e n d   t h e i r   p ro c e d u re s   a n d   i t 
i s   fo l l ow i n g   u p   t h e   a c t i o n   t a k e n   by   t h e s e 
M ember St ates.

T h e   C o m m i s s i o n   w i l l   r a i s e   t h e   i s s u e   o f 
e xc e s s i v e   u s e   o f   t h e   n o t i f i c a t i o n   w a i v e r 
u n d e r   l o c a l   c u s t o m s   p r o c e d u r e   i n   t h e 
training ac tions organised in the M ember 
States and in the guidel ine s.

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REPLY OF THE 
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VII. second in de nt
T h e   M e m b e r   S t a t e s   a r e   c u r r e n t l y   b e i n g 
e n c o u r a g e d   t o   r a p i d l y   i m p l e m e n t   t h e 
recently developed regulator y framewor k 
a n d   g u i d e l i n e s,   t h ro u g h   t ra i n i n g   a c t i o n s 
o n   s i m p l i f i e d   p r o c e d u r e s   a n d   S i n g l e 
A u t h o r i s a t i o n   fo r   S i m p l i f i e d   Pr o c e d u r e s 
(SASP) car r ied out in M ember States. Aus-
t r i a ,   P o r t u g a l   a n d   I r e l a n d   h a v e   h o s t e d 
training ac tions on simplified procedures 
and others are planned to take place dur -
i n g   t h e   c u r r e n t   y e a r   i n   Po l a n d ,   S w e d e n , 
Sloven ia, France and the Net her lan ds.

M o n i t o r i n g   a c t i o n s   o n   s i m p l i f i e d   p ro c e -
dures have been included in the monitor -
ing programme for 2010. The Commission 
s e r v i ce s   a re   p re p a r i n g   t h e   s t a r t   o f   t h e s e 
mon ito r ing  ac tio ns.

VII. third indent
Th e   Co m m i s s i o n   w i l l   re v i e w   t h e   Cu s to m s 
Au d i t   G u i d e   to   co n s i d e r   f u r t h e r   d e ve l o p -
m e n t   o f   c o m m o n   s t a n d a r d s   f o r   e x - p o s t 
a u d i t s   a n d   w i l l   c o n s i d e r   i n   t h e   C u s t o m s 
Code  Commit tee t he iss ue o f stan d ards.

VII. fou r th indent
T h e   C o m m i s s i o n   w i l l   b e g i n   d i s c u s s i o n s 
wit h  M emb er  States  in  th e  Cu stoms   Code 
Committee with a view to developing r isk 
p r o f i l e s   f o r   T O R   a n d   C o m m u n i t y   t r a d e 
p o l i c y.   S i m p l i f i c a t i o n   p r a c t i c e s   w i l l   b e 
re v i e we d   d u r i n g   t h e   m o n i t o r i n g   a c t i o n s 
on simp lified  p ro cedures.

VII. fif th inde nt
W i t h   R e g u l a t i o n   ( E C )   N o   1 1 9 2 / 2 0 0 8   t h e 
Co m m i s s i o n   h a s   a l r e a d y   t a k e n   a c t i o n   a s 
requested by the Cour t. Fur ther develop -
ments are o ngo ing.

V II . si x t h ind ent
T h e   C o m m i s s i o n   w i l l   i n v i t e   t h e   M e m b e r 
S t a t e s   t o   m a k e   t r a d e r s   m o r e   a w a r e   o f 
t h e i r   o b l i g a t i o n s   a n d   r e s p o n s i b i l i t i e s . 
T h e   t r a i n i n g   a c t i o n s   o n   s i m p l i f i e d   p r o -
c e d u r e s   a r e   f o r   b o t h   c u s t o m s   o f f i c i a l s 
a n d   t r a d e r s .   S o m e   M e m b e r   S t a t e s   h a v e 
i n c l u d e d   t r a d e r s   i n   t h e   a u d i e n c e,   o t h e r s 
w i l l   o r g a n i s e   i n d i v i d u a l   t r a i n i n g   a c t i o n s 
for t rad ers.

INTRODUCTION

2 . 
C o n s t a n t   a d a p t a t i o n   t o   e v o l v i n g   t e c h -
n i c a l ,   e co n o m i c   a n d   p o l i t i c a l   co n d i t i o n s 
resulted in the amendment of the Customs 
Co de Implementing Provisions which will 
be come applicable in 2013.

OBSERVATIONS

2 6. 
T he Commission consider s that it s guide -
lin e s  f o r  m o ni to r in g  th e  co r re c t  ap p li c a -
tion of simplif ie d pro ce dures and of con -
tro ls 2  are  h e lp in g  to  har m o nis e  p r ac tices 
and are being re gularly up date d (work on 
the f if th version is currently ongoing).

2 6. firs t  indent
T h i s   p o i n t   w i l l   b e   d e ve l o p e d   i n   t h e   n e x t 
ve r s i o n   o f   t h e   g u i d e l i n e s.   An n ex  V   o f   t h e 
c u r re n t   g u i d e l i n e s   a l re a d y   d e s c r i b e s   t h e 
p o t e n t i a l   r i s k   i n d i c a t o r s   t o   b e   c h e c k e d 
d u r i n g   t h e   p r e - a u d i t s   a s   w e l l   a s   t h e 
ac tion s to  be t ak en .

2  TAXUD/1284/2005.

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REPLY OF THE 
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3 0.
I n   t h e   c o u r s e   o f   i t s   i n s p e c t i o n   t h e   Co m -
miss ion  h as made similar obse r vat io ns in 
t h e   c a s e   o f   a   n u m b e r   o f   M e m b e r   S t a t e s 
a n d   h a s   a s k e d   t h o s e   M e m b e r   S t a t e s   t o 
amend their procedures. The Commission 
i s   fo l l ow i n g   u p   t h e   a c t i o n   t a k e n   by   t h e s e 
M em ber States.

T h e   u s e   o f   n o t i f i c a t i o n   w a i v e r s   u n d e r 
t h e   l o c a l   c l e a r a n c e   p r o c e d u r e   i s / w i l l   b e 
a d d r e s s e d   d u r i n g   t h e   t r a i n i n g / m o n i t o r-
i n g   a c t i o n s .   A   c o m p r e h e n s i v e   s t a n d a r d 
control strategy  will be recomme n de d.

3 1. 
The guidelines are being improved by the 
Pro j e c t   G ro u p   o n   t h e   i m p l e m e n t a t i o n   o f 
s i m p l i f i e d   p r o c e d u r e s / S A S P   a n d   s p e c i a l 
a t te n t i o n   w i l l   b e   gi ve n   to   t h i s   a n d   o t h e r 
p o i n t s   m e n t i o n e d   i n   t h e   C o u r t   o f   A u d i-
tor s’ f indin gs.

3 3.
The work on enhancement of the Customs 
Audit  Guid e will star t  in  20 10.

3 5.
T h e   i n c r e a s i n g   u s e   o f   v a r i o u s   s i m p l i f i e d 
p r o c e d u r e s   i n   t h e   M e m b e r   S t a t e s ,   t h e 
f i n d i n g s   m a d e   by   t h e   Co m m i s s i o n   i n   t h e 
co u r s e   o f   i t s   e a r l i e r  TO R   i n s p e c t i o n s   a n d 
t h e   o b s e r vat i o n s   m a d e   by   t h e   Co u r t   d u r-
i n g   i t s   a u d i t s   p ro m p t e d   t h e   Co m m i s s i o n 
to   s e l e c t   s i m p l i f i e d   p ro ce d u re s   a s   a   s p e -
cific  the me for  its 20 0 8 ins pec tion s.

26 . se cond inde nt
Th e   l e gi s l at i o n   d o e s   n o t   p re s c r i b e   a   s p e -
c i f i c   n u m b e r   o f   c h e c k s   to   b e   c a r r i e d   o u t. 
H o w e v e r,   a   m i n i m u m   n u m b e r   o f   c h e c k s 
b a s e d   o n   r i s k   a n a l y s i s ,   i n c l u d i n g   a   r a n-
d o m   e l e m e n t ,   s h o u l d   b e   m a d e   b e f o r e 
r e l e a s e   a n d   t h e   C o m m i s s i o n   h a s ,   i n   t h e 
c o u r s e   o f   i t s   i n s p e c t i o n s ,   r e q u e s t e d   t h e 
M e m b e r   S t ate s   t h at   d o   n o t   a l re a d y   c a r r y 
ou t suc h chec ks to  d o s o.

26 . th ird  ind ent
R e c o n c i l i a t i o n   i s   p a r t   o f   t h e   n a t i o n a l 
s y s t e m s .   T h e   C o m m i s s i o n   a g r e e s   t h a t 
r e c o n c i l i a t i o n   s h o u l d   b e   p r o c e s s e d   i n 
a   s t r u c t u r e d   a n d   a u t o m a t e d   w a y   a n d   i s 
e n c o u r a g i n g   t h e   M e m b e r   S t a t e s   t o   d o 
so.

28 .
Th e   Co m m i s s i o n   f a c i l i t ate s   t h e   exc h a n g e 
o f   r i s k - r e l a t e d   i n f o r m a t i o n   a l s o   r e l a t -
i n g   t o  TO R   a n d   c o m m o n   t r a d e   p o l i c y   v i a 
t h e   p r o v i s i o n   o f   t h e   e l e c t r o n i c   C o m m u-
n i t y   R i s k   M a n a g e m e nt   Sys te m   u s i n g   R i s k 
I n fo r m at i o n   Fo r m s   a n d   t h u s   e n s u re s   t h at 
a p p r o p r i a t e   i n f o r m a t i o n   c a n   b e   s h a r e d 
q u i c k l y   a n d   e f f e c t i v e l y   b e t w e e n   t h e 
a p p r o p r i a t e   r i s k   m a n a g e m e n t   c e n t r e s 
a n d   c u s t o m s   c o n t r o l   p o i n t s   i n   t h e   C o m-
munit y.

29 . 
A   co m m o n   a p p ro a c h   to   r i s k   m a n a g e m e nt 
is also possible in a paper-based environ -
ment. I t  is, however, t ru e that automated 
r i s k   a n a l ys i s   i s   m o re   e f fe c t i ve   t h a n   m a n -
ual r is k  anal ysis.

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REPLY OF THE 
COMMISSION

The Commission opted, five years ago, for 
developing a harmonised legal framework 
fo r   t h e   s i m p l i f i e d   p ro c e d u re s   w h i c h   w a s 
a c h i e v e d   w i t h   t h e   p u b l i c a t i o n   o f   R e g u -
l a t i o n   ( E C )   N o   1 1 9 2 / 2 0 0 8   a m e n d i n g   t h e 
Custom s Code  I m plementin g Provis i on s.

S i n c e   t h e n   t h e   C o m m i s s i o n   h a s   b e e n 
d e v e l o p i n g   t r a i n i n g   a n d   m o n i t o r i n g 
ac tions on simplified procedures/SASP in 
several M ember  St ates.

D ur ing the training ac tions special atten-
t i o n   i s   b e i n g   g i v e n   t o   t h e   w e a k   p o i n t s 
m e n t i o n e d   i n   t h e   C o u r t   o f   A u d i t o r s ’ 
repor t.

4 0.
T h e   f i n d i n g s   o f   t h e   C o u r t   a r e   b a s e d   o n 
t h e   C o u r t ’s   C o n t r o l - M o d e l   S t a n d a r d 
which  reflec ts best  prac tice.

4 2.
Th e re   i s   n o   l e g a l   o b l i g at i o n   o n   t h e   M e m-
b e r   St ate s   to   fo l l ow   a ny   p a r t i c u l a r   m o d e l 
o f   p re - a u t h o r i s at i o n   a u d i t.   N e ve r t h e l e s s, 
t h e   C o m m i s s i o n   c o n s i d e r s   t h e   m o d e l 
used by th e Cour t use ful.

4 3.
The authorisations examined by the Cour t 
w e r e   i s s u e d   p r i o r   t o   1   J a n u a r y   2 0 0 9 . 
U n t i l   1   J a n u a r y   2 0 0 9   t h e r e   w a s   n o   l e g a l 
re q u i re m e n t   t o   a u d i t   t h e   t r a d e r   p r i o r   t o 
t h e   g r a n t   o f   a n   a u t h o r i s a t i o n   fo r   s i m p l i-
f i e d   p r o c e d u r e s .   H o w e v e r,   p r i o r   t o   t h a t 
d ate,   i t   wa s   t h e   p ra c t i ce   i n   s e ve ra l   M e m-
b e r   S t a t e s   t o   d o   s o.   N e i t h e r   w a s   t h e r e   a 
l e g a l   r e q u i r e m e n t   t o   d r a w   u p   a   c o n t r o l 
p l a n   o r   r i s k   a s s e s s m e n t   a l t h o u g h   d o i n g 
t h i s   w o u l d   h a v e   c o n f o r m e d   w i t h   b e s t 
prac tice.

36 .
B e f o r e   c h o o s i n g   s i m p l i f i e d   p r o c e d u r e s 
a s   a   s p e c i f i c   t h e m e   fo r   i t s   i n s p e c t i o n s   i n 
20 08,  t he  Direc torate - G eneral   fo r   B udg e t 
h a s   a l s o   e x a m i n e d   a s p e c t s   o f   t h e   f u n c -
t i o n i n g   o f   s i m p l i f i e d   p r o c e d u r e s   d u r -
i n g   i t s   i n s p e c t i o n s .   I n   r e c e n t   y e a r s   i t 
h a s   e x a m i n e d   a s p e c t s   r e l a t i n g   t o   t h e 
o p e r a t i o n   o f   s i m p l i f i e d   p r o c e d u r e s   i n 
t h e   c o u r s e   o f   i t s   i n s p e c t i o n s   o f   E l e c -
t r o n i c   C u s t o m s   D e c l a r a t i o n s   i n   2 0 0 4 , 
Customs Warehousing in 2005 and Transit 
i n   2 0 0 6 .   I n   i t s   c o n t i n u a l   e x a m i n a t i o n   o f 
t h e   B - a c c o u n t s   i t   a l s o   e x a m i n e s   a s p e c t s 
o f   t h e s e   p r o c e d u r e s   w h e n   t h e y   a r e   t h e 
s u b j e c t   o f   t h e   f i l e s   e x a m i n e d.   I t   h a s   a l s o 
e x a m i n e d   c o n t r o l   a s p e c t s   o f   s i m p l i f i e d 
procedures in the course of its inspec tion 
of t he Cus to ms Co nt rol  Strategy  i n  2 0 0 9 .

38 .
U n d e r   t h e   C o m m u n i t y   R i s k   M a n a g e -
m e n t   Fr a m e w o r k   t h e   M e m b e r   S t a t e s   a r e 
r e q u i r e d   t o   e x c h a n g e   a n d   s h a r e   r i s k - 
related infor mation, including r isks relat-
i n g   t o   TO R   a n d   C o m m u n i t y   t r a d e   p o l i c y 
r i s k s ,   i n   a c c o r d a n c e   w i t h   A r t i c l e   4 g ( 2 ) 
o f   t h e   Cu s t o m s   Co d e   I m p l e m e n t i n g   Pro -
v i s i o n s .   T h e   C o m m i s s i o n   f a c i l i t a t e s   t h i s 
p r o c e s s   v i a   t h e   p r o v i s i o n   o f   t h e   e l e c -
t ro n i c   Co m m u n i t y   R i s k   M a n a g e m e nt   Sys-
t e m   t o   e n s u re   t h a t   a p p ro p r i a t e   i n fo r m a-
tion can be shared quick ly and effec tively 
b e t w e e n   t h e   a p p r o p r i a t e   r i s k   m a n a g e -
m e nt   ce nt re s   a n d   c u s to m s   co nt ro l   p o i nt s 
i n   t h e   Co m m u n i t y.   I n   t h e   l a s t   t h re e   ye a r s 
M ember States have exchanged 6  330 R isk 
I n f o r m a t i o n   Fo r m s   ( R I F s )   o n   r i s k s   u n d e r 
the competence of customs, 844  of which 
r e l a t e d   t o   T O R .   I n   a d d i t i o n ,   i n   t h e   l a s t 
three years the Commission has issued 64 
R isk I nformation Forms (RIFs) on risks fall-
ing within the competence of customs; of 
t h e s e   1 0   re l a te d   to  TO R   a n d   t ra d e   p o l i c y 
r isks.

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Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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REPLY OF THE 
COMMISSION

5 1. 
T h e   B e l g i a n   a u t h o r i t i e s   h a v e   i n f o r m e d 
the Commission that a new feedback sys-
te m   co n ce r n i n g   t h e   o u tco m e   o f   co n t ro l s 
h a s   b e e n   p u t   i n   p l a c e   w i t h   e f f e c t   f r o m 
1  O c t o b e r   2 0 0 9 .   T h e   C o m m i s s i o n   w i l l 
examine the func tioning of this system in 
t h e   c o u r s e   o f   i t s   f u t u r e   i n s p e c t i o n s   a n d 
w i l l   c o n f i r m   t h a t   t h e   w e a k n e s s e s   f o u n d 
by  th e Cour t have been  addres s ed.

5 4.
Th e   Co m m i s s i o n   a gre e s   t h at   a   re v i e w,   o n 
t h e   b a s i s   o f   r i s k   a n a l y s i s ,   o f   t h e   d o c u-
m e n t s   s u p p o r t i n g   t h e   s u p p l e m e n t a r y 
d e c l a r a t i o n s   s h o u l d   b e   c a r r i e d   o u t .   T h e 
C o m m i s s i o n   h a s ,   i n   t h e   c o u r s e   o f   i t s 
i n s p e c t i o n s ,   d r a w n   t h e   a t t e n t i o n   o f   t h e 
M e m b e r   St ate s   to   t h e   n e e d   fo r   s u f f i c i e nt 
documentar y controls and is following up 
the measures taken by the M ember States 
to im prove t hese  controls.

5 5.
T h e   Co m m i s s i o n   a g re e s   t h a t   a   re c o n c i l i-
a t i o n   s h o u l d   b e   m a d e   b e t w e e n   t h e   s i m-
p l i f i e d   t r a n s a c t i o n s   a n d   t h e   s u p p l e m e n-
t a r y   d e c l a r a t i o n s .   T h e   a u t o m a t i o n   o f 
s i m p l i f i e d   p ro c e d u re s   w i l l   f a c i l i t a t e   t h i s 
process.

The reconciliation of the simplified trans-
a c t i o n s   w i t h   t h e   s u p p l e m e n t a r y   d e c l a r -
at i o n   i s   a   re l e va nt   i s s u e   d u r i n g   t h e   t ra i n-
i n g   a c t i o n s   o n   s i m p l i f i e d   p ro ce d u re s   a n d 
w i l l   b e   a d d re s s e d   d u r i n g   t h e   m o n i to r i n g 
ac tion s st ar tin g in S eptember  20 1 0 .

45 .
Th e   l e gi s l at i o n   d o e s   n o t   p re s c r i b e   a   s p e -
c i f i c   n u m b e r   o f   c h e c k s   to   b e   c a r r i e d   o u t. 
H o w e v e r,   a   m i n i m u m   n u m b e r   o f   c h e c k s 
b a s e d   o n   r i s k   a n a l y s i s ,   i n c l u d i n g   a   r a n-
d o m   e l e m e n t ,   s h o u l d   b e   m a d e   b e f o r e 
r e l e a s e   a n d   t h e   C o m m i s s i o n   h a s ,   i n   t h e 
c o u r s e   o f   i t s   i n s p e c t i o n s ,   r e q u e s t e d   t h e 
M e m b e r   S t ate s   t h at   d o   n o t   a l re a d y   c a r r y 
o u t   s u f f i c i e n t   c h e c k s,   o r   d o   n o t   d o   s o   i n 
a   s a t i s f a c t o r y   m a n n e r,   t o   t a k e   r e m e d i a l 
ac tion.

47 .
Th e   Co m m i s s i o n   fo u n d   s i m i l a r   u s e   o f   t h e 
‘super-simplification’ (notification waiver) 
i n   a   n u m b e r   o f   M e m b e r   S t a t e s   i n   t h e 
co u r s e   o f   i t s   i n s p e c t i o n s   i n   2 0 0 8 / 2 0 0 9 .   I t 
d re w   t h e   at te nt i o n   o f   t h e   M e m b e r   St ate s 
t o   t h e   f a c t   t h a t   t h i s   f a c i l i t y   s h o u l d   o n l y 
b e   a l l o w e d   a s   a n   e x c e p t i o n a l   m e a s u r e 
a n d   a s k e d   t h e m   t o   a m e n d   t h e i r   p r o c e -
dures ap p rop r iatel y.

48 .
Th e   Co m m i s s i o n   fo u n d   s i m i l a r   s i t u at i o n s 
d u r i n g   i t s   i n s p e c t i o n s   a n d   i s   c o n t i n u i n g 
t o   fo l l o w   u p   t h i s   i s s u e   w i t h   t h e   M e m b e r 
States co nce r ned.

50 .
Th e   u s e   o f   r i s k   a n a l ys i s   fo r   c u s to m s   co n-
t ro l   h a s   b e e n   m a n d ato r y   s i n ce   1   J a n u a r y 
2 0 0 7 .  Th e   re q u i re m e nt   to   c a r r y   o u t   a u to -
m a t e d   r i s k   a n a l y s i s   fo r   c u s t o m s   c o n t ro l s 
c a m e   i nto   e f fe c t   f ro m   2 6   D e ce m b e r   2 0 0 7 
w i t h   t h e   e n t r y   i n t o   f o r c e   o f   R e g u l a t i o n 
(E C )  No   6 48 /2005  an d  R egu l atio n   (E C )  N o 
1 8 7 5 / 2 0 0 6 .  Th e   re q u i re m e nt   to   a u to m ate 
s i m p l i f i e d   p r o c e d u r e s   c o m e s   i n t o   e f fe c t 
o n l y   f r o m   1   J a n u a r y   2 0 1 1 .   T h e   c o m b i n-
ation of these fac tors explains why not all 
t h e   M e m b e r   S t a t e s   h a v e   a u t o m a t e d   r i s k 
p r o f i l e s   i n   p l a c e   f o r   s i m p l i f i e d   p r o c e d-
u r e s   b u t   t h e y   a r e   w o r k i n g   t o w a r d s   t h i s 
g o a l.   I n   t h e   co u r s e   o f   i t s   i n s p e c t i o n s   t h e 
Commission has encouraged the national 
a u t h o r i t i e s   t o   s p e e d   u p   t h e   a u t o m a t i o n 
o f   s i m p l i f i e d   p r o c e d u r e s   i n   t h o s e   M e m-
b e r   S t a t e s   w h e r e   p a p e r - b a s e d   s y s t e m s 
are stil l  in  u se.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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REPLY OF THE 
COMMISSION

6 1.
The Commission has also drawn attention 
to the weak nesses in post- clearance con-
t ro l s   i n   t h e   M e m b e r   S t a t e s.  T h e   c u s t o m s 
c o n t r o l s   a n d   p r o c e d u r e s   i n   a   l o t   o f   t h e 
M ember States are in a state of transition 
a s   t h e   n a t i o n a l   a u t h o r i t i e s   a r e   r e f i n i n g 
t h e i r   s t r a t e g y   a n d   r e t h i n k i n g   t h e i r   c o n -
trols to meet the challenges posed by the 
n e w   p ro ce d u re s   a n d   re q u i re m e nt s   o f   t h e 
M ode r nis ed Customs Code.

6 2.
E U   l e g i s l a t i o n   d o e s   n o t   p r e s c r i b e   h o w 
M e m b e r   S t a t e s   s h o u l d   o r g a n i s e   t h e i r 
c u s t o m s   c o n t ro l   a c t i v i t i e s   fo r   s i m p l i f i e d 
p r o c e d u r e s .   T h i s   m e a n s   t h a t   t h e   M e m -
b e r   S t a t e s   a re   re s p o n s i b l e   fo r   p u t t i n g   i n 
place an efficient customs control frame -
w o r k ,   i n c l u d i n g   e f f e c t i v e ,   r i s k - b a s e d , 
e x - p o s t   a u d i t s .   I n   t h e   c o u r s e   o f   i t s   TO R 
inspec tions the Commission has obser ved 
we a k n e s s e s   i n   t h e   f re q u e n c y   a n d   q u a l i t y 
o f   s o m e   M e m b e r   S t a t e s ’  e x - p o s t   a u d i t s 
a n d   h a s   a s k e d   t h o s e   M e m b e r   S t a t e s   t o 
t a k e   re m e d i a l   m e a s u re s   a n d   i t   i s   fo l l o w-
i n g   u p   t h e i r   a c t i o n .  Th e   Co m m i s s i o n   w i l l 
c o n t i n u e   t o   v e r i f y   a s p e c t s   o f   c u s t o m s 
c o n t r o l   i n   i t s   f u t u r e   TO R   i n s p e c t i o n s .   A 
n u m b e r   o f   M e m b e r   S t a t e s   a r e   c u r r e n t l y 
r e v i e w i n g   t h e i r   c o n t r o l   p r o c e d u r e s ,   i n 
order  to  improve  them  and  adapt  them  to 
a n   e nv i r o n m e n t   w h e re   s i m p l i f i e d   p ro c e -
dures are  in c reas ingly  used.

F u r t h e r m o r e ,   t h e   n e x t   r e v i s i o n   o f   t h e 
s i m p l i f i e d   p r o c e d u r e s / S A S P   g u i d e l i n e s , 
a s   w e l l   a s   t h e   t r a i n i n g   a n d   m o n i t o r i n g 
a c t i o n s   o n   s i m p l i f i e d   p r o c e d u r e s   w i l l 
a d d r e s s ,   i n   a   c o m p r e h e n s i v e   w a y ,   t h e 
need for a control strategy where all r isks 
a re   i d e nt i f i e d   a n d   co m p l i a n ce   a c t i o n s   a s 
w e l l   a s   t h e i r   f r e q u e n c y   c l e a r l y   r e c o m -
men ded.

56 .
Th e   a u to m at i o n   o f   s i m p l i f i e d   p ro ce d u re s 
i s   a   m a n d ato r y   re q u i re m e nt   f ro m   1   J a n u-
ar y 2 011.

58 .
The Commission found that in some Mem-
ber States guidelines are in use which are 
m o r e   c o m p r e h e n s i v e   t h a n   t h o s e   i n   t h e 
‘ C u s t o m s   A u d i t   G u i d e’,   w h i l e   i n   o t h e r s , 
e l e m e nt s   o f   t h e   G u i d e   h ave   b e e n   i n co r p -
orated  in nat io nal  gu idel ines o n  aud it.

T h e   n e e d   f o r   t h e   c o m m o n   u s e   o f   t h e 
g u i d e   i s   h i g h l i g h t e d   d u r i n g   t r a i n i n g 
a c t i o n s .   T h e   n e x t   v e r s i o n   o f   t h e   g u i d e -
l i n e s   o n   s i m p l i f i e d   p r o c e d u r e s / S A S P 
w i l l   re co m m e n d   e x p l i c i t l y   t h e   u s e   o f   t h e 
‘C u s t o m s   A u d i t   G u i d e’.   A   s p e c i a l   s i m p l i -
fied procedures/SASP e -lear ning tool was 
d e ve l o p e d   i n   2 0 0 8   a n d   re l e a s e d   i n   J a n u-
a r y   2 0 0 9 ,   w h e re   t h e   co nt ro l   s t rate g y   i s   a 
re l e v a n t   i s s u e.   I t   i s   a v a i l a b l e   i n   f i ve   l a n-
g u a g e   ve r s i o n s   a n d   te n   f u r t h e r   l a n g u a g e 
v e r s i o n s   a r e   b e i n g   d e v e l o p e d   t o g e t h e r 
wit h M emb er St ates  co ncer ned.

60 .
T h e   C o m m i s s i o n   h a s   e x a m i n e d   t h e   f r e -
q u e n c y   o f   p o s t- c l e a ra n ce   co nt ro l s   i n   t h e 
course of its inspec tion on simplified pro -
cedures in 2008 and on the Customs Con-
trol Strategy in 2009 and will continue to 
ex a m i n e   t h e   f re q u e n c y   o f   p o s t- c l e a ra n ce 
a u d i t s   i n   t h e   co u r s e   o f   i t s   f u t u re   i n s p e c -
t i o n s .   T h e   C o m m i s s i o n   a l s o   f o u n d   i n   i t s 
i n s p e c t i o n s   i n   r e c e n t   y e a r s   t h a t   e x - p o s t 
audits were not frequent enough in many 
M e m b e r   S t a t e s .   W h e r e   i t   f o u n d   t h i s   i t 
re q u e s te d   t h e   re l e va nt   M e m b e r   St ate s   to 
i n c r e a s e   t h e   f r e q u e n c y   o f   t h e s e   a u d i t s . 
A s   r e g a r d s   t h e   U K ,   t h e   C o m m i s s i o n   h a s 
n o t i c e d   s o m e   i m p r o v e m e n t   i n   t h e   a u d i t 
o f   t r a d e r s   u s i n g   s i m p l i f i e d   p r o c e d u r e s 
s i n ce   t h e   co m m e n ce m e nt   o f   t h e   n at i o n a l 
p r o j e c t   o n   C u s t o m s   F r e i g h t   S i m p l i f i e d 
Proced ures.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

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REPLY OF THE 
COMMISSION

7 2.
T h e   C o m m i s s i o n   w i l l   s t a r t   a   d i s c u s s i o n 
w i t h   t h e   M e m b e r   S t a t e s   i n   t h e   C u s t o m s 
Co d e   Co m m i t te e   t h i s   ye a r   w i t h   a   v i e w   to 
developing re levant  r is k profiles.

7 4.
T h e   C o m m i s s i o n   w i l l   e x a m i n e   t h e   c a s e s 
i d e nt i f i e d   by   t h e   Co u r t   i n   o rd e r   to   d e te r -
mine whether the relevant Member States 
m a y   b e   h e l d   f i n a n c i a l l y   r e s p o n s i b l e   f o r 
th e  losses  inc ur red. The  definit ive   los s   of 
d u t y   c a n n o t   b e   a s c e r t a i n e d   by   t h e   Co m-
m i s s i o n   a t   t h i s   s t a g e   a n d   t h e   M e m b e r 
St ate s’  f i n a n c i a l   re s p o n s i b i l i t y   c a n n o t   b e 
d e te r m i n e d   b e fo re   t h e   fo l l ow- u p   o f   e a c h 
in dividual case h as been com pleted.

7 5.
T h e   C o m m i s s i o n   s e r v i c e s   w i l l   e x a m i n e 
th e cases wh ere the req ues ted doc ume n-
t at i o n   h a s   n o t   b e e n   s u p p l i e d   to   s e e   w h at 
ac tion  th e M ember  States have  t aken .

T h e   n e w   r u l e s   o n   s i m p l i f i e d   p r o c e d u r e s 
h a ve   s p e c i f i e d   t h e   a c t i o n   t o   b e   t a k e n   i n 
c a s e s   o f   n o n   c o m p l i a n c e   ( s u s p e n s i o n   o f 
the author isation or revocation in case of 
ser ious  a nd repeated infr ing ements ) .

66 .
T h e   C o m m i s s i o n   i s   f o l l o w i n g   u p   t h e 
a c t i o n   o f   t h e   M e m b e r   S t a t e s   c o n c e r n e d 
i n   a l l   t h e   c a s e s   o b s e r v e d   b y   t h e   C o u r t . 
Th e   f i n a n c i a l   i m p a c t   i n   te r m s   o f   p o s s i b l e 
l o s s e s   o f   t h e s e   c a s e s   c a n   b e   d e t e r m i n e d 
o n l y   a f t e r   t h i s   f o l l o w - u p   h a s   b e e n   c o m-
pleted.

67 .
T h e   C o m m i s s i o n   i s   f o l l o w i n g   u p   t h e 
n o n - a v a i l a b i l i t y   o f   t h e   n e c e s s a r y   d o c u -
ments with Sweden and I reland. The I r ish 
author ities have recovered the amount of 
Tr a d i t i o n a l   O w n   R e s o u rc e s   i nvo l ve d   a n d 
t h e y   h ave   u n d e r t a k e n   to   c l o s e l y   m o n i to r 
t h e   av a i l a b i l i t y   o f   d o c u m e n t s   co n ce r n e d 
i n   o rd e r   to   p re ve nt   a ny   re c u r re n ce   o f   t h e 
p ro b l e m .  Th e   Co m m i s s i o n   re q u e s te d   t h e 
I r i s h   a u t h o r i t i e s   t o   d r a w   u p   a n   a c t i o n 
plan of the remedial measures to be taken 
to   a d d re s s   t h e   d e f i c i e n c i e s   fo u n d   by   t h e 
Co u r t   a n d   t h e   I r i s h   a u t h o r i t i e s   s u p p l i e d 
a   c o p y   o f   t h a t   p l a n .  T h i s   a c t i o n   p l a n   h a s 
been m onito re d by t he Com missi on .

69 .
Th e   U K   w i l l   b e   re q u e s te d   to   p u t   i n   p l a ce 
m e a s u re s   to   e n s u re   t h at   t h e   l i ce n ce s   a re 
wr itten d ow n at  the time o f rel ea se.

70 .
T h e   M e m b e r   S t a t e s   c o n c e r n e d   w i l l   b e 
requ ested  to  en su re  that  t he  l ice n ces   are 
wr itten d ow n at  the time o f rel ea se.

71 .
T h e   C o m m i s s i o n   w i l l   r e q u e s t   t h e   M e m-
b e r   S t a t e s   t o   p u t   r e m e d i a l   m e a s u r e s   i n 
place.

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CONCLUSIONS  
AND RECOMMENDATIONS

7 9.
E U   l e g i s l a t i o n   d o e s   n o t   p r e s c r i b e   h o w 
M ember States should organise their cus -
t o m s   c o n t r o l   a c t i v i t i e s .   T h i s   m e a n s   t h a t 
t h e   M e m b e r   S t a t e s   a r e   r e s p o n s i b l e   f o r 
putting in place an efficient customs con-
t ro l   f ra m e wo r k ,   i n c l u d i n g   e f fe c t i ve,   r i s k-
b a s e d ,   e x - p o s t   a u d i t s .   I n   t h e   c o u r s e   o f 
i t s  TO R   i n s p e c t i o n s   t h e   C o m m i s s i o n   h a s 
a l s o   o b s e r ve d   we a k n e s s e s   i n   t h e   q u a l i t y 
a n d   f r e q u e n c y   o f   s o m e   M e m b e r   S t a t e s ’ 
ex-post audits and has asked these M em-
b e r   S t a t e s   t o   t a k e   r e m e d i a l   m e a s u r e s.   I t 
is following up their ac tion. The Commis-
s i o n   w i l l   co nt i n u e   to   ve r i f y   c u s to m s   co n-
trol aspec ts in its future TOR inspec tions. 
A number of M ember States are cur rently 
r e v i e w i n g   t h e i r   c o n t r o l   p r o c e d u r e s ,   i n 
o r d e r   t o   i m p r o v e   t h e m   a n d   a d a p t   t h e m 
to   a n   e nv i ro n m e nt   w h e re   s i m p l i f i e d   p ro -
cedures  are inc reas in gly  used.

8 0.
I n   o r d e r   t o   e n s u r e   t h a t   t h e   n e w   f r a m e -
w o r k   o p e r a t e s   e f f e c t i v e l y,   t h e   C o m m i s-
s i o n   w i l l   c a r r y   o u t   m o n i t o r i n g   a c t i o n s 
sta r tin g in S eptember  2 0 10.

8 1.
Wo r k   o n   r i s k   a n a l y s i s   i s   c o n s t a n t l y   p r o -
gressin g.

78 .
I t   i s   t h e   r e s p o n s i b i l i t y   o f   t h e   M e m b e r 
St ate s   to   e s t a b l i s h   a n d   i m p l e m e nt   a   co n -
t r o l   f r a m e w o r k   w h i c h   a d e q u a t e l y   s a f e -
g u a rd s   t h e   co l l e c t i o n   o f  Tra d i t i o n a l   O w n 
R e s o u rce s.   I n   d o i n g   s o   t h e y   m u s t,   o n   t h e 
b a s i s   o f   r i s k   a n a l y s i s ,   d e v i s e   c o n t r o l s   o f 
s u f f i c i e n t   q u a l i t y   a n d   i m p l e m e n t   t h e m 
w i t h   s u f f i c i e n t   f re q u e n c y   t o   e n s u re   t h a t 
Traditional O wn R esources are protec ted. 
I n the implementation of the controls the 
Member States should take account of the 
p r e s c r i p t i o n   p e r i o d   o f   t h r e e   y e a r s .   T h e 
C o m m i s s i o n   i n   t h e   c o u r s e   o f   i t s   i n s p e c -
t i o n s   ex a m i n e s   t h e s e   co nt ro l s   a n d   w h e re 
i t   f i n d s   s h o r t c o m i n g s   i t   r e c o m m e n d s 
t h at   t h e   M e m b e r   St ate s   t a k e   a p p ro p r i ate 
measures to address these shor tcomings. 
T h e   Co m m i s s i o n   w i l l   fo l l o w   u p   t h e   f i n d-
i n g s   o f   t h e   Co u r t   w i t h   t h e   re l e va nt   M e m -
b e r   S t a t e s   a n d   c o n f i r m   t h a t   s a t i s f a c t o r y 
remed ial meas ures  are tak en.

D u r i n g   m o n i to r i n g   a c t i o n s   o n   s i m p l i f i e d 
p r o c e d u r e s   s t a r t i n g   i n   S e p t e m b e r   2 0 1 0 
i t   w i l l   b e   p o s s i b l e   t o   a s s e s s   t h e   c o n t r o l 
m e a s u r e s   i n   p l a c e   a n d   t h e i r   i m p a c t   o n 
compliance. B est prac tices will be recom-
mended.

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REPLY OF THE 
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8 6. 
D ur in g t he mon itor ing ac t ions  o n s im pli-
fied procedures/SASP star ting in S eptem-
b e r   2 0 1 0   s p e c i a l   a t t e n t i o n   w i l l   b e   g i v e n 
to pre - aut hor isation  audits.

8 7.
I t   i s   t h e   r e s p o n s i b i l i t y   o f   t h e   M e m b e r 
St ate s   to   e s t a b l i s h   a n d   i m p l e m e nt   a   co n -
t r o l   f r a m e w o r k   w h i c h   a d e q u a t e l y   s a f e -
g u a rd s   t h e   co l l e c t i o n   o f  Tra d i t i o n a l   O w n 
R e s o u r c e s .   I n   d o i n g   s o   t h e y   s h o u l d ,   o n 
t h e   b a s i s   o f   r i s k   a n a l ys i s,   d e v i s e   co nt ro l s 
of sufficient qualit y, and implement them 
w i t h   s u f f i c i e n t   f re q u e n c y   t o   e n s u re   t h a t 
Traditional O wn Resources are adequately 
p ro te c te d.  Th e   Co m m i s s i o n   i n   t h e   co u r s e 
of its inspec tions examines the frequenc y 
a n d   q u a l i t y   o f   t h e s e   c o n t ro l s   a n d   w h e re 
i t   f i n d s   s h o r t c o m i n g s   i t   r e c o m m e n d s 
t h a t   t h e   M e m b e r   S t a t e s   t a k e   a p p r o p r i-
ate   m e a s u re s   to   a d d re s s   t h e m .  Th e   Co m-
mission will follow up the findings of the 
Co u r t   w i t h   t h e   M e m b e r   St ate s   co n ce r n e d 
a n d   c o n f i r m   t h a t   s a t i s f a c t o r y   r e m e d i a l 
meas ure s are take n.

D u r i n g   m o n i to r i n g   a c t i o n s   o n   s i m p l i f i e d 
p r o c e d u r e s   s t a r t i n g   i n   S e p t e m b e r   2 0 1 0 
i t   w i l l   b e   p o s s i b l e   t o   a s s e s s   t h e   c o n t r o l 
m e a s u r e s   i n   p l a c e   a n d   t h e i r   i m p a c t   o n 
compliance. B est prac tices will be recom-
mended. The new rules on simplified pro -
c e d u r e s   h a v e   s p e c i f i e d   t h e   a c t i o n   t o   b e 
t a k e n   i n   c a s e s   o f   n o n - c o m p l i a n c e   ( s u s-
p e n s i o n   o f   a u t h o r i s a t i o n   o r   r e v o c a t i o n 
i n   c a s e   o f   s e r i o u s   a n d   re p e ate d   i n f r i n g e -
ments ).

83 .
P r i o r   t o   2 0 0 8 ,   w h e n   t h e   C o m m i s s i o n 
s e l e c t e d   s i m p l i f i e d   p ro c e d u re s   a s   a   s p e -
c i f i c   t h e m e   fo r   i t s   i n s p e c t i o n ,   i t   h a s   a l s o 
e x a m i n e d   a s p e c t s   o f   s i m p l i f i e d   p r o c e -
dures in the course of its inspec tions e.g. 
t h e   i n s p e c t i o n s   o f :   E l e c t r o n i c   D e c l a r a-
t i o n s   i n   2 0 0 4 ,   C u s t o m s   Wa r e h o u s i n g   i n 
2005, Transit in 2006 and it also examines 
a s p e c t s   o f   t h e s e   p r o c e d u r e s   i n   i t s   c o n-
t i n u a l   e x a m i n a t i o n   o f   f i l e s   c o n c e r n i n g 
i te m s   i n   t h e   B   a cco u nt   w h e n   t h e y   a re   t h e 
s u b j e c t   m a t t e r   o f   t h e s e   f i l e s .   I t   h a s   a l s o 
e x a m i n e d   c o n t r o l   a s p e c t s   o f   s i m p l i f i e d 
procedures in the course of its inspec tion 
of t he Cus to ms Co nt rol  Strategy  i n  2 0 0 9 .

84 . firs t inde nt
T h e   g u i d e l i n e s   a r e   c u r r e n t l y   b e i n g 
i m p r o v e d   a n d   t h e   f i f t h   v e r s i o n   i s   u n d e r 
preparation. The Cour t ’s obser vations will 
be ta ken into acco u nt.

84 . se cond inde nt
M onitor in g ac t io ns  star t  in  20 10 .

84 . th ird  ind ent
T h e   C o m m i s s i o n   w i l l   s t a r t   a   d i s c u s s i o n 
w i t h   t h e   M e m b e r   S t a t e s   i n   t h e   C u s t o m s 
Co d e   Co m m i t te e   t h i s   ye a r   w i t h   a   v i e w   to 
develop ing su ch p ro fil es.

84 . four th  ind ent
Th e   Co m m i s s i o n   w i l l   re v i e w   t h e   Cu s to m s 
Au d i t   G u i d e   to   co n s i d e r   f u r t h e r   d e ve l o p -
m e n t   o f   c o m m o n   s t a n d a r d s   f o r   e x - p o s t 
a u d i t s   a n d   w i l l   c o n s i d e r   i n   t h e   C u s t o m s 
Code  Commit tee t he iss ue o f stan d ards.

84 . fif t h in de nt
T h e   C o m m i s s i o n   w i l l   t a k e   i n t o   a c c o u n t 
t h e   C o u r t ’s   f i n d i n g s   w h e n   c o n s i d e r i n g 
f u r t h e r   s i m p l i f i c a t i o n s   f o r   c u s t o m s   p r o -
cedu res.

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REPLY OF THE 
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8 9.
E U   l e g i s l a t i o n   p r e s c r i b e s   n e i t h e r   a   s p e -
c i f i c   n u m b e r   o f   c h e c k s   t o   b e   c a r r i e d   o u t 
b e f o r e   r e l e a s e   n o r   t h e   q u a l i t y   o r   f r e -
quen c y  of ex- pos t audits.

I n   o rd e r   to   p ro te c t   t h e   E U’s   f i n a n c i a l   a n d 
trade polic y interests,  M e mbe r St ates  are 
r e s p o n s i b l e   fo r   p u t t i n g   i n   p l a c e   a n   e f f i-
cient control framework . This implies that 
a   m i n i m u m   n u m b e r   o f   c h e c k s   b a s e d   o n 
risk analysis, including a random element, 
s h o u l d   b e   m a d e.  Th e   Co m m i s s i o n   h a s,   i n 
t h e   c o u r s e   o f   i t s   i n s p e c t i o n s ,   r e q u e s t e d 
t h e   M e m b e r   S t ate s   w h i c h   d o   n o t   a l re a d y 
c a r r y   o u t   a   s u f f i c i e n t   n u m b e r   o f   c h e c k s, 
o r   d o   n o t   d o   s o   i n   a   s at i s f a c to r y   m a n n e r, 
to t ake remedial ac tion.

W h e r e   t h e   C o m m i s s i o n   f i n d s   s h o r t c o m-
i n g s   i n   t h e   q u a l i t y   a n d   f r e q u e n c y   o f 
e x - p o s t   a u d i t s   i t   r e c o m m e n d s   t h a t   t h e 
M e m b e r   S t a t e s   t a k e   a p p r o p r i a t e   m e a s-
u re s   to   a d d re s s   t h e s e   s h o r tco m i n g s.  Th e 
Co m m i s s i o n   w i l l   a l s o   fo l l ow   u p   t h e   f i n d-
i n g s   o f   t h e   Co u r t   w i t h   t h e   re l e va nt   M e m -
b e r   S t a t e s   a n d   c o n f i r m   t h a t   s a t i s f a c t o r y 
remed ial me asure s are  t aken .

9 0. (a) 
Th e   Co m m i s s i o n   h a s,   i n   t h e   co u r s e   o f   i t s 
inspec tions, requested the Member States 
w h i c h   d o   n o t   a l re a d y   c a r r y   o u t   s u f f i c i e nt 
c h e c k s,   o r   d o   n o t   d o   s o   i n   a   s a t i s f a c t o r y 
man ne r, to t ake remedial ac tion .

9 0. (c )
T h e   Co m m i s s i o n   w i l l   fo l l o w   u p   t h e   f i n d-
ings of the Cour t with the M ember States 
a n d   c o n f i r m   t h a t   s a t i s f a c t o r y   r e m e d i a l 
meas ure s are take n.

87 . firs t inde nt
I n   t h e   c o u r s e   o f   i t s   i n s p e c t i o n   t h e   Co m -
m i s s i o n   h a s   h a d   s i m i l a r   o b s e r v a t i o n s   i n 
t h e   c a s e   o f   a   n u m b e r   o f   M e m b e r   S t a t e s 
a n d   h a s   a s k e d   t h o s e   M e m b e r   S t a t e s   t o 
amend their procedures. The Commission 
i s   fo l l ow i n g   u p   t h e   a c t i o n   t a k e n   by   t h e s e 
M ember St ates.

T h e   u s e   o f   n o t i f i c a t i o n   w a i v e r   i n   t h e 
f ra m e wo r k   o f   t h e   LC P   a n d   t h e   a b s e n ce   o f 
automated r isk profiles will be addressed 
d u r i n g   t h e   t r a i n i n g   a n d   m o n i t o r i n g 
a c t i o n s   o n   s i m p l i f i e d   p r o c e d u r e s / S A S P. 
B e s t   p r a c t i c e s   w i l l   b e   d i s c u s s e d   i n   t h e 
C u s t o m s   C o d e   C o m m i t t e e   a n d   r e c o m-
mended.

87 . se cond inde nt
Th e   re co n c i l i a t i o n   o f   t h e   s i m p l i f i e d   w i t h 
t h e   s u p p l e m e n t a r y   d e c l a r a t i o n   w i l l   b e 
a d d re s s e d   d u r i n g   t h e   t ra i n i n g   a n d   m o n i-
to r i n g   a c t i o n s   o n   s i m p l i f i e d   p ro ce d u re s /
S A S P.   B e s t   p r a c t i c e s   w i l l   b e   d i s c u s s e d   i n 
the Customs code Committee and recom-
mended.

88 .
D u r i n g   i t s   i n s p e c t i o n s ,   t h e   C o m m i s s i o n 
f o u n d   s i m i l a r   d e f i c i e n c i e s   i n   t h e   p r o -
c e d u r e s   a n d   c o n t r o l s   i m p l e m e n t e d   i n 
s o m e   M e m b e r   S t a t e s   a n d   i t   r e q u e s t e d 
t h e s e   M e m b e r   S t a t e s   t o   t a k e   a p p r o p r i-
ate   re m e d i a l   m e a s u re s.   I t   i s   fo l l ow i n g   u p 
t h e   a c t i o n   b e i n g   t a k e n   by   t h e s e   M e m b e r 
S t a t e s .   I t   w i l l   c o n t i n u e   t o   e x a m i n e   t h e 
f re q u e n c y   a n d   q u a l i t y   o f   p o s t - c l e a r a n c e 
audits in its future inspec tions. The Com-
mission will also follow up the shor tcom-
i n g s   f o u n d   b y   t h e   C o u r t   a n d   v e r i f y   t h a t 
remed ial meas ures  are p u t in p l a ce.

I t will review the Customs Audit Guide to 
consider fur ther development of common 
standards for ex-post audits and will con-
sider in the Customs Code Committee the 
issu e o f st andards.

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REPLY OF THE 
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9 1. t hird  in dent
The Commission is encouraging the M em-
ber  St ates to com puter ise t he proce s sin g 
o f   s i m p l i f i e d   p r o c e d u r e s ,   i n c l u d i n g   t h e 
onlin e wr itin g- down of licences.

Th e   co n t ro l   o f   g o o d s   s u b j e c t   to   p ro h i b i-
t i o n s   a n d   r e s t r i c t i o n s   u n d e r   s i m p l i f i e d 
p ro c e d u re s,   S A S P   a n d   f u t u re   c e n t r a l i s e d 
clearance is being improved. A document 
( TAX U D   C 4 / 0 0 0 6 / 2 0 0 9 )   h a s   b e e n   d r a f te d 
w h e re   s e ve ra l   re co m m e n d at i o n s   a re   p ro -
posed such as the mandator y use of indi-
cators by economic operators when lodg-
ing the summar y entr y declaration or the 
simplified  custom s dec laration .

9 1. four t h in dent
T h e   C o m m i s s i o n   i s   i n v i t i n g   M e m b e r 
St ate s   to   e n h a n ce   t ra i n i n g   fo r   t ra d e r s.  To 
g i v e   a n   e x a m p l e ,   t r a i n i n g   o n   s i m p l i f i e d 
p ro c e d u re s / S A S P   i s   a l re a d y   t a k i n g   p l a c e 
u n d e r   t h e   Cu s to m s   2 0 1 3   Pro gra m m e   ( s e e 
b ox   re p l y   to   o b s e r vat i o n  V I I ,   2 n d   a n d   6 t h 
i n d e n t s ) .   S o m e   M e m b e r   S t a t e s   t a k e   t h i s 
o p p o r t u n i t y   t o   i nv i t e   t r a d e r s   t o   p a r t i c i-
pate in  the se train in g ac tion s.

9 1. fif t h  indent
T h e   C o m m i s s i o n   i s   p r o m o t i n g   p e r f o r m-
a n c e   m e a s u r e m e n t   a n d   b e n c h m a r k i n g 
e x e r c i s e s   b e t w e e n   M e m b e r   S t a t e s   i n 
o r d e r   t o   e n h a n c e   c o n t r o l   p r a c t i c e s   f o r 
simplified  procedures.

F o r   r e l i a b l e   e c o n o m i c   o p e r a t o r s ,   t h e 
m o d e r n i s e d   C u s t o m s   C o d e   p r o v i d e s   f o r 
fur ther simplifications (self assessment — 
Ar t icle 1 1 6 M CC ) .

90 . (d)
T h e   C o m m i s s i o n   i n   t h e   c o u r s e   o f   i t s 
i n s p e c t i o n s   h a s   c o n s i s t e n t l y   e x a m i n e d 
t h e   f r e q u e n c y   o f   e x - p o s t   a u d i t s   a n d , 
w h e r e   s h o r t c o m i n g s   w e r e   f o u n d ,   h a s 
re q u e s te d   t h e   M e m b e r   S t ate s   co n ce r n e d 
t o   t a k e   r e m e d i a l   a c t i o n .   I t   h a s   a l s o   f o l -
l o w e d   u p   t h e   a c t i o n   t a k e n   b y   t h e   M e m-
ber States.

91 . firs t inde nt
The Commissio n w il l  u rge M emb er  St ates 
to   i m p l e m e nt   w i t h o u t   d e l ay   t h e   re ce nt l y 
c r e a t e d   f r a m e w o r k   o n   s i m p l i f i e d   p r o c e -
d u re s.  T h e   Co u r t ’s   c o n t ro l   m o d e l   w i l l   b e 
c o n s i d e r e d   w h e n   r e v i s i n g   t h e   C u s t o m s 
Audit  Guide.

91 . se cond inde nt
T h e   C o m m i s s i o n   w i l l   c r i t i c a l l y   r e v i e w 
t h e   M e m b e r   S t a t e’s   p r a c t i c e   o f   a u t h o r -
i s i n g   n o t i f i c a t i o n   w a i v e r s .   W i t h   r e g a r d 
t o   t h e   p r a c t i c e ,   t h e   g u i d e l i n e s   a l r e a d y 
give infor mation on this issue and will be 
improve d this ye ar.

The notification waiver issue is addressed 
i n   t h e   m o n i to r i n g   q u e s t i o n n a i re   a n d   w i l l 
b e   c o n s i d e r e d   d u r i n g   t h e   m o n i t o r i n g 
ac tions.

I n   t h e   c o u r s e   o f   i t s   i n s p e c t i o n s   w h e r e 
i t   h a s   f o u n d   e x t e n s i v e   u s e   o f   t h e  ‘s u p e r 
s i m p l i f i c a t i o n ’,   t h e   C o m m i s s i o n   h a s 
asked those M ember States to review and 
amend  the ir p rocedures.

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

Special Report No 1/2010 – Are simplified customs procedures for imports effectively controlled?

European Court of Auditors

Special Report No 1/2010

Are simplified customs procedures for imports effectively controlled?

Luxembourg: Publications Office of the European Union

2010 — 59 pp. — 21 × 29,7 cm

ISBN 978-92-9207-682-5

doi:10.2865/65396

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SIMPLIFIED  CUSTOMS  PR OCEDURES  FOR  IMPOR TS  ARE  A  KE Y 

ELEMENT  OF  EU  CUSTOMS  AND  TR ADE  FACILITATION  POLIC Y. 

THIS  REPORT  ANALYSES  WHE THER  THE  T WO  MOST  IMPORTANT 

S I M P L I F I E D   P R O C E D U R E S ,   T H E   S I M P L I F I E D   D E C L A R AT I O N 

P R O C E D U R E   A N D   T H E   LO C A L   C L E A R A N C E   P R O C E D U R E   A R E 

EFFECTIVELY CONTROLLED IN ORDER TO PROTECT ADEQUATELY THE 

FINANCIAL AND TRADE POLICY INTERESTS OF THE EU. THE REPORT 

ALSO  CONSIDERS  WHE THER  THE  COMMISSION  HAS  DEVELOPED 

A  SOUND  CONTR OL  APPR OACH  FOR  SUCH  PR OCEDURES  AND 

W H E T H E R  M E M B E R  S TAT E S  AC T UA L LY  C A R RY  O U T  E F F E C T I V E 

CONTROLS BASED ON SUCH AN APPROACH.

EUROPEAN COURT OF AUDITORS