During the next few years, the overhaul of Customs legislation that is currently being prepared by the European Commission is going to have far-reaching consequences for all businesses involved with international trade, including many significant benefits to traders and governments in the UK and across Europe. Despite common legislation and the free movement of goods, a fully integrated Customs Union has not yet been achieved and differences in practical control and enforcement procedures between member states cause significant transaction costs. As a result, in 2003, the Commission set out its ambitious Vision for a paperless trade and Customs environment.
This Vision includes many measures that should help trade facilitation including a European Single Window, Centralised Clearance, Risk Management and the Authorised Economic Operator (AEO) concept. Efforts to implement this Vision are already proceeding including a number of legislation led initiatives and parallel projects that are either specific elements of the Vision or adopted legacy projects. The facets are summarised in a working document called the Multi Annual Strategic Plan (MASP).
Most projects set out in the MASP, including a European Single Window, the Automatic Export System and the Automatic Import System are aiming for completion dates in 2009/10. The completion of the New Computerised Transit System is set for early 2006. It is anticipated that the new harmonised Single Administrative Document (SAD) will now be made mandatory from the beginning of 2007.
SITPRO strongly supports the Commission's admirable intentions. However, there is the real danger that the Vision will be watered down in the absence of political support and resistance from some administrations. It is important that the trade sends a strong signal to ensure that its voice is heard and that the Vision assures improved competitiveness. Already, developments are having a direct impact on the issue of Chief replacement and initiatives like the UK Single Window.
There is considerable scope to influence developments and SITPRO with EUROPRO will work to ensure that trade facilitation remains at the heart of the proposed legislation and projects. A large number of trade consultation exercises are taking place. If you would be interested in finding out more, please contact Andrew Grainger who is co-ordinating the responses from both SITPRO and EUROPRO.
Security Amendment to current Code (648/2005):
- Adopted by the EU Institutions in May 2005;
- Expected to be applied in 2006 once Implementing Provisions (IPs) have been agreed; and
- Supporting IT infrastructure to be put into operation by all Member States before mid 2009.
Security Amendment Implementing Provisions:
- Trade Consultation in progress with a submission deadline for 16 September 2005.
Modernised Customs Code (MCC):
- Trade Consultation and Trade Impact Assessment finalised end of 2004;
- Commission intend to submit final MCC to the other EU institutions by end of September 2005;
- Submission will be made together with a proposed Council Decision which aims to commit Member States to the vision;
- Expected date for MCC to be adopted is September 2007;
- Commission expects MCC and its IPs to be made applicable by 2009.
Modernised Customs Code Implementing Provisions:
- Other than provision set in the IPs for the Security Amendment, dates for trade consultation have not yet been set.
Return to SITPRO News: Issue 53, Summer 2005
