Customs procedures are changing fast and the challenge is for customs authorities to keep pace with those changes and simplify procedures to facilitate trade, according to European Commissioner Kovacs speaking yesterday at a major conference in Brussels on modernising European Customs rules and creating a more competitive business environment in Europe.
The conference was chaired by SITPRO Director Peter Wilmott, a former UK Customs Commissioner and ex-Director General for Customs in the European Commission who proclaimed the conference a great success saying “the contributions were considered, thoughtful and of a high level. In particular it was pleasing to see that competitiveness is high on everybody’s agenda and a priority for Commissioner Kovács, but there is still much unfinished business.”
SITPRO, as the UK’s trade facilitation agency, has long championed improvements in customs and other border processes as a simple and direct way of cutting business costs and Mr Wimott explained that, “there are private sector concerns at unanswered questions on Europe’s future customs environment, but business clearly supports the Commission in its aim of providing a high quality, seamless and fully functional electronic clearance system for Europe, and the conference urged Member States to commit themselves wholeheartedly to a successful reform programme.”
Over 100 conference delegates representing a cross section of European businesses heard Commissioner Kovács emphasise that trade is a key feature of the economy and how, in a global market where EU business is facing tough competition, competitiveness is of vital importance. He recognised that Customs procedures has a direct impact on the Lisbon strategy. The work of Customs, he said, is changing fast and the challenge is for Customs to keep pace with those changes and simplify procedures to facilitate trade. The Modernised Community Customs Code (MCCC) will mean better, faster, cheaper clearance and fewer Customs procedures but, at the same time, Customs cannot hide from their responsibilities to protect citizens from risk.
Robert Verrue, Director General for Taxation and Customs Union, added that the MCCC is an essential element of the e-Customs programme and the basis of a simple paperless environment for Customs that will facilitate trade and provide for more consistent interpretation and application of Customs procedures throughout the EU. Current trade procedures are unnecessarily complex and do not reflect the shifting focus of Customs work from the collection of duties to the control function.
Business participants including Philippe de Buck Secretary-General UNICE, Jean Martin Chair of the Confederation of the Food and Drink Industries of the EU, Jaap Mulders Chairman of the European Express Association and Philip Challen General Electric International and speakers from the floor warned the Commission that while they welcomed the standardisation, harmonisation and simplification of Customs rule and supported the fight against terrorism they were not yet convinced that the new Customs procedures would deliver the improvements in competitiveness claimed or promote and facilitate trade. They argued that trade facilitation and security should be mutually supportive but the benefits proposed for Authorised Economic Operators (AEOs) were limited and the criteria and the investment required were unrealistic for small and medium sized enterprises (SMEs). These trade representatives emphasised their desire to continue to work with the Commission to produce an effective, efficient and affordable system that retained an appropriate level of security.
Miroslaw Zielinski, the European Commission Director responsible for Customs Policy, welcomed the trade’s positive contribution to the debate so far. Responding to the concerns expressed he noted that not all the trade had the same thoughts but, focussing on the yet to be agreed implementing provisions for the Security Amendment to the existing Customs Code, he explained that while there should be a balance, better Customs control meant better safety and better facilitation, an aspiration that SITPRO strongly shares.
For further information contact SITPRO’s Head of Communications, Paul Hiscock, on 020 7215 8158 or paul.hiscock@sitpro.org.uk.
The conference was held at the Renaissance Hotel, Brussels and was jointly sponsored by the American Chamber of Commerce to the European Union (AmCham EU), the Union des Industries de la Communauté Européenne ( UNICE), the European Express Association (EEA), International Road Transport Union (IRU) and EUROPRO, the umbrella body for European trade facilitation agencies. The conference gathered together officials from the European Commission, the EU Member States, European Parliament, representatives of major trading partner nations and representatives from a wide range of industry sectors. It discussed the link between the simplification of customs procedures, facilitation of trade and competitiveness with particular focus on new safety and security provisions proposed by the European Commission to amend the Community Customs Code that could increase significantly the costs of importing and exporting in Europe.
SITPRO News Release - 28 June 2006
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