AUTHORISED ECONOMIC OPERATORS and SECURITY The Community Customs Code

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AUTHORISED ECONOMIC OPERATORS andSECURITY-
The Community Customs Code -

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The legal framework

• Current legislation
• - Community Customs Code, 648/2005
• - Implementing Provisions, 1875/2006
• Future legislation
• - the Modernised Community Customs Code
• - Implementing Provisions

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AUTHORISED ECONOMIC OPERATORS(AEO)

• From 01.01.2008.
• Recognised in all 27 MS
• Not limited in time
• Relates to the entity itself, not to its
  subsidiaries

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Types of AEO

• AEO/ Customs Simplifications
• AEO/ Security and Safety
• (security ? guarantees)
• (safety ? products safety)
• AEO/ Full

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Benefits for AEO/Simplifications

• Gets simplification authorisations quicker and
  simpler
• Fewer physical and document based controls,
  unless other legislation applies (f.e. CAP)
• Priority treatment, if controlled
• At a convenient place for AEO, if controlled

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Example 1

• AEO/C certificate
• Request for simplified declaration authorisation
• --------------------------------
• Only to examine enters the goods for the
  procedure
• occasionally or not new Art. 261 (4)

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Example 2

• Carrier established in Belgium
• Wants transit simplifications (he is acting as
  Principal in transit)
• Holder of AEO/Customs Simplification Certificate
• --------------------------------------------------
  ---
• More than half of Art. 373 conditions are met.

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Easier acces to simplifications
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AEO/SIMPLIFICATIONS criteria

• Customs compliance (3 years)
• Good management of commercial/transport records
• Financial solvency (3 years)

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Question

• A person submits an application for
  authorisation to use the local clearance
  procedure.
• He is not an AEO.
• Will Customs reject the application?

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SECURITY

• Based on WCO SAFE Framework
• Adopted in 2005
• Intend to implement 144 countries

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Pre-arrival / Pre-departure Information(from
1/7/2009)

• Security risk analysis before goods arrive or
  leave the Community
• Electronic information
• Data-set based on international WCO Framework of
  Standards
• Time-limits based on WCO Framework of Standards

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So, whats new???

• Harmonised data set for summary declarations
• More data than before (new security risk
  indicators)
• Deadline of its lodging (to allow for security
  risk analysis before the goods arrive)
• Electronic
• For exit too

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Importation

• WHO?
• - carriers, freight forwarders
• - importers/customs agents may also if want
• WHAT AND WHEN?
• - dependant on the mode of transport
• (maritime, road, rail, air)
• TO WHOM?
• customs office of entry (maritime special)
• customs office of import if in customs
  declaration

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WHEN/importation

• Deep-sea/cont. 24 hours before loading
• Short-sea/cont. 2 hours before arrival
• Maritime/bulk 4 hours before arrival
• Air/long 4 hours before arrival
• Air/short at take-off
• Rail 2 hours before arrival
• Road 1 hour before arrival

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Exportation

• WHO?
• - the exporter
• WHAT AND WHEN?
• - dependant on the mode of transport
• TO WHOM?
• - to the customs office of export (might be the
  office of exit, but not characteristic)

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WHEN/exportation

• Deep-sea/cont. 24 hours before loading
• Short-sea/cont. 2 hours before leaving
• Maritime/bulk 4 hours before leaving
• Air 30 minutes before departure
• Rail 2 hours before leaving
• Road 1 hour before leaving

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Typical new, security data elements

• Notify party
• Countries of routing
• HS code ??????
• UN Dangerous Goods Code
• Method of payment of transport charges

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Exportation

• The export declaration will have to contain the
  data elements of the pre-departure information
• Both for normal and for simplified export
  procedures
• (f.e. simplified export declarations)
• 23 security data elements, out of which 6-9
  additional to current export declarations

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Benefits for AEO/Security

• Prior notification of physical controls related
  to security
• Less data for pre-arrival/departure information
• Fewer physical and document based controls,
  unless other legislation applies (CAP)
• Priority treatment, if controlled
• At a convenient place for AEO, if controlled

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Most important benefit for AEO/Security in the
long term

• Mutual recognition with third countries AEO
  schemes
• (for example US C-TPAT, comparison began)

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Collateral benefits

• Less thefts and losses
• Employee commitment
• Fewer safety incidents
• Customer loyalty

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AEO/SECURITY criteria

• Customs compliance (3 years)
• Good management of commercial/transport records
• Financial solvency (3 years)
• if AEO/Security
• Security standards

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SECURITY STANDARDS

• BASED ON WCO FRAMEWORK
• OTHER SECURITY STANDARDS ARE RECOGNISED
• TO THE EXTENT
• THEY ARE IDENTICAL OR COMPARABLE
• (ISO, ISPS etc.)

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SECURITY STANDARDS

• Buildings security
• Premises security
• Cargo units security
• Prohibitions/restrictions, where applicable
• Business partners security
• Staff security
• Staff training

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Areas of interest

• AEO Helpdesk
• AEO national contact points for Traders
• Training activities
• -- e-learning tool for Customs (5 hours)
• -- e-learning tool for Trade (3 hours)
• AEO Guidelines (under amendment now)

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THANK YOUFOR YOUR ATTENTION

• AEO Programme
• AEO Guidelines
• http//ec.europa.eu/taxation_customs/customs/polic
  y_issues/
• customs_security/index_en.htm