Proposal for a COUNCIL DECISION on the conclusion of the Agreement between the European Union and Canada on customs cooperation with respect to matters related to supply chain security
Date: 2012-03-28
Institutions: European Commission
Subjects: Canada, cooperation agreement (EU), customs cooperation, delivery, exchange of information, traceability

EUROPEAN COMMISSION 

Brussels, 28.3.2012  
COM(2012) 144 final 

2012/0073 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Union and Canada on 
customs cooperation with respect to matters related to supply chain security 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The customs relations between the EU and Canada are based on the Agreement on 
customs cooperation and mutual assistance in customs matters1 (CMAA) that entered 
into force on 1 January 1998. 

In December 2005, the Canada Border Services Agency (CBSA) signalled its interest 
to  move  forward  with  closer  cooperation  between  the  EU  and  Canada  on  supply 
chain  security.  Following  a  series  of  exchanges  of  views,  an  agreement  was  found 
between the Commission and the CBSA on the possible scope of the new agreement 
expanding the EU-Canada customs cooperation.  

On 26 November 2009, the Council adopted a decision authorising the Commission 
to open negotiations with Canada. The negotiations were launched in May 2011. 

The negotiations have resulted in the draft Agreement between the European Union 
and Canada on customs cooperation with respect to matters related to supply chain 
security  (the  draft  Agreement)  which  builds  on  and  expands  the  CMAA.  The  draft 
Agreement  will  establish  a  legal  basis  for  EU-Canada  customs  cooperation  on 
matters  of  supply  chain  security  and  risk  management,  including  reinforcing  the 
customs related aspects for securing the logistics chain of international trade while at 
the  same  time  facilitating  legitimate  trade;  establishing  minimum  standards,  to  the 
extent  practicable,  for  risk  management  techniques  and  related  requirements  and 
towards  and,  where  appropriate,  establishing  mutual 
programmes;  working 
recognition  of  risk  management  techniques,  risk  standards,  security  controls, 
container  security  and  trade  partnership  programmes  including  equivalent  trade 
facilitation  measures;  exchanging  information  for  supply  chain  security  and  risk 
management  subject  to  the  confidentiality  of  information  and  personal  data 
protection  requirements  set  out  in  Article  16  of  the  CMAA  and  in  the  relevant 
legislation  of  the  Contracting  Parties;  establishing  contact  points  for  this  purpose; 
introducing,  where  appropriate,  an  interface  for  data  exchange,  including  for  pre-
arrival  or  pre-departure  data;  developing  a  strategy  that  allows  the  customs 
authorities to partner cooperatively in the area of cargo inspection; collaborating, to 
the  extent  practicable,  in  any  multilateral  fora  where  issues  related  to  supply  chain 
security may be appropriately raised and discussed. The draft Agreement constitutes 
an expansion of the CMAA in line with Article 23 of the CMAA, which sets down 
that  the  Contracting  Parties  may  expand  the  CMAA  with  a  view  to  increasing  the 
levels of customs cooperation and supplementing them by means of agreements on 
specific sectors or matters. The CMAA will remain the overall umbrella for customs 
cooperation  between  the  Contracting  Parties  and  the  institutional  set-up  of  the 
CMAA is proposed to be extended also to cover the draft Agreement. In practice, the 
EU-Canada  Joint  Customs  Cooperation  Committee  (JCCC),  established  under 
Article 20 of the CMAA, will administer both agreements and will be empowered to 
adopt  the  necessary  implementing  decisions  in  accordance  with  the  respective 

1 

OJ L 7 of 13.01.98, p. 38 

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domestic  legislation  of  the  Contracting  Parties2,  e.g.  on  mutual  recognition  of  risk 
management  techniques,  risk  standards,  security  controls  and  trade  partnership 
programmes.  

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  AND  IMPACT 
ASSESSMENTS 

Member  States  were  consulted  in  the  framework  of  the  Council  Working  Party  on 
Customs Union. 

There is no need for an impact assessment.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The Council is asked to adopt a decision on the conclusion of the draft Agreement 
based on Article 207(4) first subparagraph, in conjuncture with Article 218(6)(a) of 
the Treaty on the Functioning of the European Union. 

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

4. 

BUDGETARY IMPLICATIONS  

The proposal has no budgetary implications for the Union budget. 

5. 

OTHER 

The  draft  Agreement  is  consistent  with  the  objectives  and  actions  identified  by  the 
Commission for the implementation of the EU Internal Security Strategy.3 

A proposal for a Council decision on the signing, on behalf of the Union, of the draft 
Agreement  is  submitted  in  parallel  to  this  proposal  for  a  Council  decision  on  the 
conclusion of the draft Agreement. 

2 

3 

The EU position for legally binding JCCC decisions is established by the Council acting on a proposal 
from the Commission. 
See  in  particular  Objective  4,  Action  3  (Common  risk  management  for  movement  of  goods  across 
external  borders)  of  the  Communication  from  the  Commission  to  the  European  Parliament  and  the 
Council  –  The  EU  Internal  Security  Strategy  in  Action:  Five  steps  towards  a  more  secure  Europe; 
COM(2010)673 final. 

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2012/0073 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Union and Canada on 
customs cooperation with respect to matters related to supply chain security 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4) first subparagraph, in conjunction with Article 218(6)(a) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament, 

Whereas: 

(1) 

(2) 

The  European  Union  and  Canada  should  expand  their  customs  cooperation  to  cover 
matters  of  supply  chain  security  and  related  risk  management  with  a  view  to 
increasing end-to-end supply chain security and at the same time facilitating legitimate 
trade.  

In  accordance  with  Council  Decision  […/…]  of  [...]4,  the  Agreement  between  the 
European Union and Canada on customs cooperation with respect to matters related to 
supply chain security was signed on [ ], subject to its conclusion at a later date. 

(3) 

The agreement should be approved on behalf of the European Union, 

HAS ADOPTED THIS DECISION:  

Article 1 

The  Agreement  between  the  European  Union  and  Canada  on  customs  cooperation  with 
respect to matters related to supply chain security is hereby approved on behalf of the Union.  

The text of the Agreement is attached to this Decision. 

4 

OJ L , , p. . 

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Article 2 

The President of the Council shall designate the person empowered to proceed, on behalf of 
the European Union, to the notification provided for in Article 9 of the Agreement, in order to 
express the consent of the European Union to be bound by the Agreement. 

Article 3 

This Decision shall enter into force on [ ....] 5.  

Done at Brussels,  

For the Council 
The President 

5 

The date of entry into force of the Agreement will be published in the Official Journal of the European 
Union by the General Secretariat of the Council. 

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ANNEX 

DRAFT 

Agreement between the European Union and Canada on customs cooperation with respect to 
matters related to supply-chain security 

THE EUROPEAN UNION and CANADA, ("the Contracting Parties"), 

Recognizing  the  need  to  increase  end-to-end  supply  chain  security  for  Canada  and  the 
European Union and at the same time facilitate legitimate trade; 

Acknowledging  the  long-standing,  close  and  productive  relations  between  the  Customs 
Authorities of Canada and of the European Union;  

Recognizing that these relations can be improved by closer cooperation on container security 
and other matters related to supply-chain security based, to the greatest extent practicable, on 
mutual recognition of risk management techniques, risk standards, security controls and trade 
partnership programmes; 

Aiming to provide a framework to explore future cooperative means to enhance supply chain 
security practices that would increase customs related efficiencies to ensure end-to-end supply 
chain  security  and  to  facilitate  legitimate  trade  for  the  benefit  of  their  respective  trade 
communities; 

Aiming to develop a strategy that allows Canada and the European Union to cooperate in the 
area of cargo inspection; 

Building upon the core elements of the World Customs Organization's SAFE Framework of 
Standards to Secure and Facilitate Global Trade;  

Referring  to  the  Agreement  between  Canada  and  the  European  Community  on  Customs 
Cooperation  and  Mutual  Assistance  in  Customs  Matters,  which  entered  into  force  on  01 
January 1998 ("the CMAA"), and desiring to expand the scope of that Agreement by means 
of an agreement on a specific matter, in accordance with Article 23 of the CMAA; 

Acknowledging that a Joint Customs Cooperation Committee (JCCC) was established under 
Article 20 of the CMAA to see to the proper functioning of the CMAA and, inter alia, take the 
measures necessary for customs cooperation in accordance with the objectives of the CMAA 
and  for  the  expansion  of  the  CMAA  with  a  view  to  increasing  the  level  of  customs 
cooperation and supplementing it on specific sectors or matters;  

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HAVE AGREED ON THE FOLLOWING:  

Article 1 

For the purpose of this Agreement, "Customs Authority" means: 

-  in  the  European  Union:  the  competent  services  of  the  European  Commission  and  the 
customs authorities of the Member States of the European Union; 

-  in  Canada:  the  governmental  administration  designated  by  Canada  as  responsible  for 
administering its customs laws. 

Article 2  

The  Contracting  Parties shall  cooperate  on  matters  of  supply-chain  security  and  related  risk 
management.  

Article 3 

The  Contracting  Parties  shall  manage  this  cooperation  through  their  respective  Customs 
Authorities. 

Article 4  

The Contracting Parties shall cooperate by:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

reinforcing the customs-related aspects of securing the logistics chain of international 
trade while at the same time facilitating legitimate trade; 

establishing  minimum  standards,  to  the  extent  practicable,  for  risk  management 
techniques and related requirements and programmes; 

working  towards  and,  where  appropriate,  establishing  mutual  recognition  of  risk 
management  techniques,  risk  standards,  security  controls,  container  security  and 
trade partnership programmes including equivalent trade facilitation measures; 

exchanging  information  for  supply-chain  security  and  risk  management;  any 
exchange of information under this Agreement shall be subject to the confidentiality 
of information and personal data protection requirements set out in Article 16 of the 
CMAA  as  well  as  any  confidentiality  and  privacy  requirements  set  out  in  the 
legislation of the Contracting Parties; 

establishing contact points for exchanging information for supply-chain security;  

introducing,  where  appropriate,  an  interface  for  data  exchange,  including  for  pre-
arrival or pre-departure data; 

developing a strategy that allows the customs authorities to cooperate in the area of 
cargo inspection;  

collaborating, to the extent practicable, in any multilateral fora where issues related 
to supply chain security may be appropriately raised and discussed.  

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Article 5 

The JCCC, established under Article 20 of the CMAA, shall see to the proper functioning of 
this  Agreement  and  shall  examine  all  issues  arising  from  its  application.  It  shall  be 
empowered to adopt decisions to implement this Agreement in accordance with the respective 
domestic  legislation  of  the  Contracting  Parties,  on  aspects,  such  as  data  transmission  and 
mutually  agreed  benefits,  of:  mutual  recognition  of  risk  management  techniques,  risk 
standards, security controls and trade partnership programmes. 

Article 6 

The  JCCC  shall  set  up  the  appropriate  working  mechanisms,  including  working  groups,  to 
support  its  work  to  implement  this  Agreement  and  to  address  in  particular  the  following 
aspects: 

identifying  any  regulatory  or  legislative  changes  required  to  implement  this 

a) 
Agreement; 

b) 

identifying and establishing measures to enhance information exchange mechanisms; 

identifying  and  establishing  best  practices, 

the 
c) 
harmonisation  of  advance  electronic  cargo  information  requirements  with  international 
standards on inbound, outbound and transit shipments; 

including  best  practices  for 

d) 
defining  and  establishing  risk  analysis  standards  for  the  information  required  to 
identify high-risk shipments imported into, transhipped through, or transiting Canada and the 
European Union;  

e) 

defining and establishing measures to harmonize risk assessment standards; 

defining  minimum  control  standards  and  methods  by  which  those  standards  may  be 

f) 
met; 

improving  and  establishing  standards  for  trade  partnership  programmes  designed  to 

g) 
improve supply-chain security and facilitate the movement of legitimate trade;  

h) 
defining  and  carrying  out  concrete  steps  to  establish  mutual  recognition  of  risk 
management  techniques,  risk  standards,  security  controls  and  trade  partnership  programmes 
including equivalent trade facilitation measures.  

Article 7  

the 
1.  If  difficulties  or  disputes  arise  between 
implementation  of  this  Agreement,  the  Customs  Authorities  of  the  Contracting  Parties  shall 
endeavour to resolve the matter through consultation and discussion. 

the  Contracting  Parties  regarding 

2. The Contracting Parties may also consent to other forms of dispute resolution. 

Article 8  

1. This Agreement may be amended by agreement in writing of the Contracting Parties.  

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2. An amendment shall enter into force 90 days after the date on which the second notification 
is  sent,  through  an  exchange  of  notes  through  diplomatic  channels,  indicating  that  the 
Contracting Parties have completed their respective internal procedures required for its entry 
into force. 

Article 9 

This  Agreement  shall  enter  into  force  on  the  first  day  of  the  month  following  the  date  on 
which  the  Contracting  Parties  have  notified  each  other  of  the  completion  of  the  procedures 
necessary to bring the Agreement into force.  

Article 10  

1. This Agreement shall remain in force for an unlimited period of time.  

2. Either Contracting Party may terminate this Agreement by serving a notice of termination 
through diplomatic channels on the other Contracting Party. 

3.  This  termination  shall  become  effective  on  the  first  day  of  the  month  following  the 
expiration of a period of six months after the date of receipt of notice of termination by the 
other Contracting Party. 

4. If this Agreement is terminated, any decisions of the JCCC will remain in effect, unless the 
Contracting Parties decide otherwise.  

In Witness whereof, the undersigned, being duly authorized, have signed this Agreement. 

Done  at  ,  in  two  original  copies,  this  day  of  201  ,  in  the  Bulgarian,  Czech,  Danish,  Dutch, 
English,  Estonian,  Finnish,  French,  German,  Greek,  Hungarian,  Irish,  Italian,  Latvian, 
Lithuanian,  Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovene,  Spanish  and  Swedish 
languages, each version being equally authentic. 

FOR THE EUROPEAN UNION 

FOR CANADA 

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