CONFIAD · Trade and business associations · BE
CONFIAD PAN EUROPEAN NETWORK CONFEDERATION INTERNATIONALE DES AGENTS EN DOUANE – INTERNATIONAL FEDERATION OF CUSTOMS BROKERS AND CUSTOMS REPRESENTATIVES CONFIAD’S POSITION PAPER ON THE PROPOSAL FOR REFORMING OF THE UNION CUSTOMS CODE (COM(2023) 259 final) October 2023 This paper discusses the position of Confédération Internationale des Agents en Douane (“CONFIAD”)1 on the Proposal for the Reform of the Union Customs Code (“UCC”) which was published by the European Commission on 17 May 2023.2 In this position paper CONFIAD presents its views on and amendments to the core provisions and elements which are of particular interest and importance to the Confederation.
…amendments to the core provisions and elements which are of particular interest and importance to the Confederation. By way of background, CONFIAD was founded in 1982 as the organization of the European Customs Brokers, with the purpose of defending and coordinating the professional interests of its members, supporting the harmonization of the legislative, professional and customs regulations at European level. The members of CONFIAD are national associations representing customs agents in nine EU Member States. CONFIAD is a member of the European Commission’s Trade Contact Group and has a permanent presence in Brussels in the form of an AISBL. The Confederation regularly contributes to the policy-making activities of the European Institutions in the area of customs.
…regularly contributes to the policy-making activities of the European Institutions in the area of customs. * * * On 17 May 2023, the European Commission presented its Proposal to reform the current EU’s Customs Code, by which it offered options on how to modernize and upgrade the existing customs legislation. The Proposal provides for some new elements, such as the EU Customs Authority, provisions relating to customs infringements and non-criminal sanctions, the EU Customs Data Hub, upgraded status of Authorized Economic Operators (“AEO”) – the Trust and Check Trader (“TCT”) status, as well as changes relating to e-commerce. The ultimate goal of the reform is to make procedures simpler and more efficient.
…as changes relating to e-commerce. The ultimate goal of the reform is to make procedures simpler and more efficient. As the Proposal has become the result of a long preparatory process, including consultations with stakeholders, CONFIAD would like to recall that it was actively involved in such a preparatory work by participating in the meetings of the Trade Contact Group and by presenting its position 1 CONFEDERATION INTERNATIONALE DES AGENTS EN DOUANE AISBL, Transparency Register Number 900179622923-45 2 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013, COM/2023/258 final Ref. Ares(2023)7196798 - 23/10/2023 2 papers to the European Commission.
(EU) No 952/2013, COM/2023/258 final Ref. Ares(2023)7196798 - 23/10/2023 2 papers to the European Commission. The CONFIAD’s position papers on the Wise Persons Group’s (“WPG”) report of August 2022 and on the Ongoing reform of the EU Customs Union of November 2022 are of particular relevance in this regard. The comments and suggestions on the Union’s customs policy expressed in those documents are still valid, however CONFIAD would like to elaborate more on some of the key provisions of the present Proposal. On customs agent profession Customs agents play an important role in international supply chains and international trade in general. They exercise the function of intermediaries between the importers, exporters or producers and customs authorities by fulfilling different customs procedures.
…between the importers, exporters or producers and customs authorities by fulfilling different customs procedures. It is without doubt that customs agents support customs administrations in performing their duties of protecting the Union borders from illegal trade flows which will not only harm the Union as a whole, but also Union citizens and businesses. In many cases, customs agents are SMEs who obtained the required competence and knowledge under the national legislation, or those who are willing to provide professional services in different Member States need to fulfil the conditions of being granted the status of AEO. In this context, it is worth mentioning that professional competence, skills and knowledge are the underlying core elements of a professional customs agent.
…that professional competence, skills and knowledge are the underlying core elements of a professional customs agent. In 2017, CONFIAD participated in the development of the European Standard EN 16992 “Competency for Customs Representatives” which defines 21 domains of competence of customs representatives, ranging from customs business understanding to all types of customs procedures and formalities. We are worried that in the UCC reform proposal there will be a limited role to customs agents, which will eventually lead to risks of existence of the whole profession. At least 10,000 customs agents are associated with CONFIAD, for instance, approximately 2,000 customs agents in Italy and 2,500 customs agents in Greece only, who serve the supply chain of around 800,000 persons in multiple sectors of the economy.
…customs agents in Greece only, who serve the supply chain of around 800,000 persons in multiple sectors of the economy. Customs agents, in addition to carrying out the primary customs clearance activities, perform consultancy and support activities for SMEs on customs, commercial and fiscal matters and are connected to the entire world of the supply chains. In many Member States of CONFIAD Member Associations, the profession of customs agents is regulated by national laws, which ensure access to this profession only after an internship program and passing a specific exam. To be accredited by a respective national customs administration, the custom agent must demonstrate that he or she has complied with the requirements set out in Article 39 of the UCC.
…the custom agent must demonstrate that he or she has complied with the requirements set out in Article 39 of the UCC. If the voice of customs agents’ profession is not heard, it may lead to very negative consequences for many persons and companies, who are for the most part small or medium-sized businesses. 3 In our opinion, the new approach or paradigm promoted by the Commission does not fully take into account the situation of customs agents.
…new approach or paradigm promoted by the Commission does not fully take into account the situation of customs agents. As a simple example, the Impact Assessment SWD(2023) 140 provides that “in terms of responsibilities, the new paradigm assigns specific roles to the five main groups of players in customs processes”, which are importer/exporter, transport layer, customs authorities, the EU-level access (Commission) and other authorities that co- operate with customs (market surveillance authorities, security and other law enforcement bodies, and tax authorities).3 The customs agents seem to be excluded from the new approach, whereas we could only find the reference to the profession in the importer/exporter section – “the new approach does not preclude the use of intermediaries, such as customs representatives, by the importer to assist in their information provision.”4 It seems that the…
…are largely facilitated by customs agents as they act in the first line of defence filtering goods coming to the EU. The profession should be supported and leveraged to tackle the possible cases of fraud at the Union’s borders. It is often the case that customs agents may reveal that importers submit wrong declarations, and therefore prevent the cases of fraud. At the same time, customs administrations should not abuse the role played by customs agents by using their knowledge and skillset to shift their function to customs intermediaries. It is worrying that under the Proposal being a trusted entity is not rewarded with simplifications with regard to the post-release controls. Due to specific professional characteristics in customs matters, customs agents should be considered trusted entities by customs administrations, and therefore should have simplifications in view of this.
…be considered trusted entities by customs administrations, and therefore should have simplifications in view of this. This feature may be, and in our view should be, used by the Commission to improve customs management, as customs agents ‘speak the same language’ with and assist national customs authorities, and in general facilitate the international trade, which is one of the goals of WTO. Customs agents know applicable customs legislation and what negative consequences may be caused by non-compliance, that is why they keep working and educating importers about the customs non-compliance. This undoubtedly facilitates the work of customs administrations, making customs agents an indispensable element in the supply chains and international trade more broadly.
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