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Serbia– Screening of the acquis Chapter 29- Customs Union

Data Integration and Harmonisation

TAXUD, Unit A3Customs Processes and Project Management

Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. The information reflects the situation at the time of the explanatory screening meeting. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa portal (http://europa.eu/)

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Presentationstructure

General contextCustoms declarations• Origin: Single Administrative Document (SAD) – Use of

International standards - Codes• Harmonisation of simplified procedures

Summary declarations (“Cargo report”)• Origin: Cargo manifest• Supply chain security

EORIUCC: • Impact on declarations• Customs decisions and authorizations

International standards

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General Context

Customs declarations at the centre of Customs processes

• Vector for data exchange (B2C, C2C)

• Help identify good flows – Risk-analysis

Customs declarations <> « Summary » declarations

Paper support > IT systems

Security concerns (>> ENS, EXS)

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SAD (1988): EU + EFTA

Rationalised and reduced administrative documentation

Ensured openness in national administrative requirements

Reduced amount of data• With possibility for countries to

require or not some of the data elements (“Optional boxes”)

Standardise and harmonise data• Which implies use of common

codes for certain data elements

Customs declarationsThe SAD

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SAD

As far as possible international standardsWCO data modelInternationally defined Codes

Country codes (iso alpha 2 codes – ISO 3166-derived) (Boxes 15, 17, 21, 34 ...)

Currency codes (box 22 – ISO 4217))Modes of transport (boxes 25 and 26 – UN-ECE rec. 28)Customs offices (box 29, 51 – UN LOCODE - partially)Package codes (box 31 UN-ECE rec. 21)Commodity code (box 33 – HS code)Documents identification (boxes 1, 40, 44, partially 1001

Edifact codes)...

Standardizes and harmonizes data - Codes (1)

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Use of common codes for as many data elements as possible

Trader identification numbers (boxes 2, 8 ...)Delivery terms (box 20)Nature of transaction (box 24)Preference codes (box 36)Procedure codes (box 37 – partially)Valuation method code (box 43)Special mentions (box 44 – partially coded)Tax types (box 47)Mode of payment (box 47)Warehouse identification (box 49)Guarantee (box 53)

SAD Standardizes and harmonizes data - Codes (2)

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Context: • Exist with national rules for more than 20 years.• Introduction of Security amendment of the Customs Code in

2005Important to :

• Ensure coherence throughout the data collection chain fromPre-arrival / pre-departure information to SAD declarationdata.

• Avoid multiple changes of legislation that would affectcustoms data collection in quick succession.

• Minimize disruptive effects on private and public IT systems

Need to harmonize first steps of simplifiedproceduresUCC developments

Simplified declarations Harmonisation

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Summary declarationsSecurity (1)

Summary declarations (“Cargo report”)

• Origin: Cargo manifestObjective: Identify goods to ensure efficient customs control

Current EU law not very detailed

• Supply chain security >> New data,

New data flows,

New timing for data input

EU harmonisation necessary

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New security environment: Consequences for Customs

Origin: International developments EU response: New Customs code security-related provisions:• Electronic information exchange between customs

administrations; • Rationalisation of customs controls

safety and security-related controls at entry or exit of goods into orfrom the Community,transfer of those concerning fiscal matters to the place where thetrader is established;

• Provide reliable traders with special, user-friendly options;• require traders to provide customs authorities with information

on goods before they are imported into or exported from theEuropean Union, via electronic summary declarations;

• introduce risk selection criteria that will apply throughout theCommunity and that will be supported by a co-ordinatedcomputerised system.

WCO framework of standard: WCO data model, AEO concept

Summary declarationsSecurity (2)

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Summary and simplified declarations - Legal framework

• Council regulation N° 648/05

• Commission Regulation N° 1875/06 (Implementing provisions, which include data requirements).

Most provisions applicable on 1.7.2009

Some provisions (AEOs) on 1.1.2008

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EORI - Introduction

• What is EORI ?• It is a system that allows the Registration and Identification

of Economic Operators• What is an EORI Number ?• It is a number, unique throughout the European Union,

assigned by a customs authority or designated authority ina Member State to economic operators and other personsthat interact with Customs.

• Who needs to be registered?

• Economic opertors established in the EU;

• Some of Economic operators established in third countries;

• Some natural persons (private individuals).

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The EORI number will be issued by the customs authoritywhere the third country operator first performs one of thefollowing acts :1) Lodge in the Community a summary or customsdeclaration with a few exceptions (e.g. the Common transitprocedure or temporary importation);2) Lodge in the Community an exit or entry summarydeclaration;3) Operate a temporary storage facility pursuant to Article185(1) of the CCIP;4) Apply for some authorisations.

EORI - Use

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Fully operational from: 1.07.2010;

Total number of EORI number assigned: > 3.3 mln;

Number of EORI numbers assigned (end 2012) to Third country operators: > 50.000; > 150 in Serbia.

Structure of the EORI number: up to 17 characters;

EORIFacts and figures

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EORIIT system (1)

Receives data provided by Member States;Stores data at central level;Performs full or “smart” replication of the EORI data to theMember States;Provides services to enable online consultation of the dataat central system level (the access to the public is limiteddue to personal data protection);Enable MS’s customs systems to access the requiredinformation for the identification of Economic Operators;Interacts with the AEO system.Intends to interact with other autorisation systems underthe UCC

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• MSs have the following alternatives in using the EORI central database:• No Replication, i.e. the MS does not replicate EORI data from

other MSs into its national system. In this case, online queriesrequesting the status of an EO are sent directly to the EORIcentral database.

• Full Replication, i.e. the MS replicates the central EO data(containing data from all other MSs) into its national database.

• Smart Replication, which is a combination of the twoaforementioned approaches.

• No MS to MS communication are to be performed.

EORI IT system (2)

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UCCImpact on declarations (1)

• Union Customs Code (UCC) >> • Electronic declarations is the rule • New procedures: Review of Procedure codes

• Integration of provisions currently scattered• « SAD » provisions:

• Export declarations• Import declarations• Transit declarations• Customs status

• « Security « Annex 30A » provisions: • Entry and exit summary declarations• Simplified declarations

• « DV1 » valuation data• « fallback procedures » forms• ...

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UCCImpact on declarations (2)

• Take stock of new developments• Statistical data (new extrastat provisions):

MS of destination/export made mandatory at import/exportNature of transaction made mandatory at import and export.

• Security data (seller/buyer, CN code)• Inclusion of new datasets

Temporary storage, Simplified transitNotifications for re-exportation, arrival, presentation ...

• Revision and restructuration of simplified declarations data

• ...

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UCCImpact on declarations (3)

• Opportunistic » improvements:• « Double origin », • Introduction of a chemical products nomenclature, • Priority to EORI Nrs on addresses• Extension of use of UN/LOCODE (places of

loading/unloading)• Improve coding (MRN, tax types, ...)• Extended use of TARIC for « certificates » codes and

multiple TARIC additional codes• Text improvements on many data elements• Review of provisions regarding level of information• Dataset streamlining (deletion or regrouping of some

elements)• ...

• Underlying preoccupations• Reduce and harmonize data wherever possible• Use of international standards

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• Harmonised data requirements for customs decisions :• Rule: electronic communication with customs authorities• Principle: to articulate authorizations information around

EORI number via "CDMS"• Synoptic presentation to help technical developments and

ensure streamlined data requirements in the long run• Approach akin to UCC IA/DA Data related draft provisions• Contains common data matrix, explanatory notes and codes• Includes 25 decisions types on AEO, BTI, valuation, transit,

customs formalities, special procedures• ...

• Underlying preoccupations:Wherever possible:• Reduce and harmonize data• Align on declarations requirements• Use of international standards

UCCCustoms decisions and authorizations

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Internationalstandards

Wherever possible, all these developments are conducted in coherence with international instruments such as:

• WCO framework of standards – WCO data model

• UN-ECE standards and recommendations

• ...

Where this is not possible, the EU links with the relevant organisations to maintain those instruments.

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Web references:

SAD page of TAXUD website:http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/sad/index_en.htm

Security page of TAXUD website:http://ec.europa.eu/taxation_customs/customs/security_amendment/index_en.htm

EORI page of TAXUD website:http://ec.europa.eu/ecip/security_amendment/who_is_concerned/index_en.htm#eori

E-customs page of TAXUD website: http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/index_en.htm

THANK YOU VERY MUCH FOR YOUR ATTENTIONANY QUESTIONS ?