TIACA · Trade and business associations · US
Brussels, 6 November 2023 EU Customs Law Reform: Proposal for a new Union Customs Code To whom it may concern, The A4E members welcome the possibility to comment on the published proposal to reform the Union Customs Code. As internationally operating companies the fundamental changes in international trade directly affect us and the approach to align the EU Customs regulations with such developments are strongly supported. A well-functioning EU Customs law with a uniform implementation in all EU Member States offering a frictionless flow of goods is of most importance for our members. We fully agree on the stated considerations that lead to the necessity of modernizing the EU customs regulations itself in order to build a strong foundation to ensure that the EU economic operators can remain competitive on the international markets.
…build a strong foundation to ensure that the EU economic operators can remain competitive on the international markets. There are certainly many new developments and challenges around the world and especially within international trade that have to be acknowledged and dealt with. Therefore, the overall decision to initiate a change in paradigm in the field of EU customs considering the several opinions and feedback of many different stakeholders over the past few years is the correct approach in order to protect and strengthen the EU, its citizens and its economy at the same time. New EU Customs Authority A more centralized approach to underline the Customs Union by standardized implementation of rules, an EU wide training concept for customs authorities and benchmarking is welcome.
…standardized implementation of rules, an EU wide training concept for customs authorities and benchmarking is welcome. The institution of an independent EU Customs Authority which would support the uniform application of the EU customs regulations is especially important for our members which are doing business throughout the EU and have been asking for a more standardized approach for years. Setting up this new organization it is of most importance that the roles of the EU COM, the EU Customs Authority and the National Customs Authorities are clearly defined to ensure an efficient and effective structure of competences, responsibilities and rights of intervention. For companies it is indispensable to have dedicated contacts for their day-to-day business who are unambiguously empowered to decide on requests in a timely manner. Ref.
…contacts for their day-to-day business who are unambiguously empowered to decide on requests in a timely manner. Ref. Ares(2023)7520939 - 06/11/2023 EU Data Hub Digitization is a core trend of our modern world. The efficient use of data for customs purposes enabling operators to hand over data just once in a coordinated and well-maintained IT architecture while these data can be used manifold throughout the whole sequence of a shipment would be a clear advantage in comparison to today’s IT landscape with lots of different systems, implementation status and national characteristics. Today our members are challenged by lots of different IT systems and interfaces and the need to hold and keep all of those up to date while considering the individual implementing schedule of any changes and updates of each Member State.
…up to date while considering the individual implementing schedule of any changes and updates of each Member State. Centralized IT systems hold the opportunity to combine all best practices of current IT systems of the Member States in one aligned approach that could ensure an efficient, effective and standardized IT system as a base of sufficient use of data for the competent authorities as well as all the different economic operators. But this approach will only be comprehensive if national systems and requirements e.g. processes in regards to prohibitions and restrictions are also aligned to that EU-wide set-up. In order to have a clear picture more details are needed. To our understanding this would also have the advantage for the economic operators to be able to analyze and create reports of their own data by themselves at all times.
…for the economic operators to be able to analyze and create reports of their own data by themselves at all times. The EU Data Hub, with all its advantages, naturally also harbors risks that can be decisive for a company's data security. The amount and quality of the data deployed are mostly but certainly combined strictly confidential and could lead to severe damages for single companies or the EU economy as a whole in case of cybercrime activities. While setting up the IT system the cybersecurity needs to be always in focus and within all aspects necessary to ensure a resistant and protective environment for the sensitive data provided by the economic operator. Another aspect that was part of our analysis is the question of which data or information are required to be provided.
Another aspect that was part of our analysis is the question of which data or information are required to be provided. Whereas several articles of the proposal list a minimum set of required data which already goes beyond the current data sets it must always be taken into consideration how costly the data collection might be for companies. Especially available data might differ for non-sale transactions where e.g. parts are only sent to the EU for repair. From our point of view and with regards to the data protection act of the EU the request for data should be restricted to the minimum required and reasonable for the purposes the data are used for.
…request for data should be restricted to the minimum required and reasonable for the purposes the data are used for. AEO versus Trust & Check status High expectations were attached to the introduction of the AEO program, but especially with regards to the associated easements for companies reaching the AEO status the implementation still offers room for improvement. It is gratifying that the need to enhance the AEO program has been recognized. The UCC reform proposal nevertheless foresees the complete replacement of the established AEO-C by a newly introduced Trust & Check trader (T&C). The status of a T&C offers advantages which haven’t been implemented in the current AEO practice yet like the option of self-assessment e.g. in regard to the determination of the customs debt of own imports.
…yet like the option of self-assessment e.g. in regard to the determination of the customs debt of own imports. Whereas this instrument is a necessary step to underline a cooperation in partnership between authorities and trusted traders the requirements to become a T&C status go beyond the AEO conditions as a real-time transfer of manifold data from the traders’ system to the EU Data Hub is expected. As the required scope of data, their level of detail as well as the expected way of data transfer is not clear from the proposal it is not possible to conclusively assess how a T&C status can be reached. Especially taking into account that commercially sensitive data might be requested as well, which can be in contradiction to cyber and business risk management strategies of companies.
…be requested as well, which can be in contradiction to cyber and business risk management strategies of companies. This might lead to a situation where established AEO-Cs which have already demonstrated the fulfilment of the requirements for a responsible and compliant trader cannot be sure to keep their current status of simplifications and easements for border crossing trade. It is not reasonable that current AEO-Cs will lose e.g. the possibility to defer the payment of customs debt or to implement centralized clearance even though they have demonstrated a consistently high quality in their customs processes and internal organization and the current legislation allows them to do so. Another important simplification is the possibility for an AEO to lower or even to get granted a waiver of the required guarantees.
…simplification is the possibility for an AEO to lower or even to get granted a waiver of the required guarantees. As stated in the proposal those simplifications will only be granted for T&C in the future. Processes and customs procedures The facilitation of legitimate trade is another pillar of the reform proposal. Ideally information on goods to be imported or exported shall be made available much earlier than today resulting in a reduction of physical customs controls when goods crossing the border. The proposal defines the foreseen special procedures which are in general the procedures as of today. In this regard it is very important that these special procedures (e.g. end-use procedure or inward processing) can be granted even as a company not having the T&C status.
…procedures (e.g. end-use procedure or inward processing) can be granted even as a company not having the T&C status. One of the most obvious changes compared to the customs clearance process as we know today will be the reduced time limit of the goods being placed under temporary storage. Non- Union goods can only be placed under temporary storage for three days or six days in case of an authorized consignee. In case of a succeeding, the goods shall be placed under the customs warehouse procedure till a final decision on the desired customs procedure for the goods is made. However, a request for an extension of the deadline is possible in exceptional cases. The proposal does not state in which cases this exemption is foreseen and what the exact requirements for such an application will look like. But to our understanding under no circumstances the given time limit will succeed ten days.
15 → 12