Customs: New security rules enter fully into force on 1 January 2011

From 1 January 2011, traders will have to make an electronic declaration to Customs with security data on goods before they leave or enter the European Union. The aim of this measure is to increase security in international trade, by enabling customs to carry out better risk analyses on the basis of the information received in advance, and therefore to better target controls. Traders have benefited from a transitional period to adapt their electronic systems to these new rules since July 2009. Algirdas Šemeta, Commissioner responsible for Taxation and Customs, Audit and Anti-Fraud said: "Customs today plays a vital role in ensuring the security of citizens and safe trade. Advance security information will assist Customs in the early detection of risky shipments and therefore to increase security without delaying reliable trade.”

From 1 January 2011, all traders involved in customs transactions and international logistics will have to provide EU Customs with security data through electronic declarations, before goods are brought into, or out of, the European Union. In addition, a uniform set of EU risk-criteria will be applied by Member States when carrying out Customs controls on goods entering or leaving the EU.Recent air cargo security incidents have shown that the reinforcement of Customs risk analysis systems is essential for good security. Access to security data at an early stage, i.e. before goods physically arrive at the border will allow cargo movements to be more efficiently screened and enable Customs authorities to carry out better risk analyses. As such, Customs will be better able to focus controls on high risk cargo, while quicker processing and release of goods at entry or exit will help to ensuring smooth trade.

The type of security data requested from the traders varies according to the means of transport and the reliability of traders involved in the operation. It can include, for example, a description of the goods, information on the consignor or exporter, the route of the goods, and any potential hazards. The time limits for submitting advance security data also vary according to the means of transport: from 24 hours in advance of loading for maritime cargo to 1 hour before arrival for road traffic or even less for certain air transport. Since 1 July 2009, it has been possible for traders to submit their advance declaration on an optional basis. From 1 January 2011, it will be compulsory.

News source: EU Press Room link: article

New customs rules allow developing countries more benefits from trade with the EU

Today the European Commission adopted a regulation revising rules of origin for products imported under the generalised system of preferences (GSP). This regulation relaxes and simplifies rules and procedures for developing countries wishing to access the EU's preferential trade arrangements, while ensuring the necessary controls are in place to prevent fraud.

Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-Fraud and Audit said:

"By updating the EU’s rules of origin, we will help to ensure that developing countries really benefit from the trade preferences on offer to them, and that the world’s poorest don’t lose out due to unnecessary complexities in our systems.”

Rules of origin are used to determine whether imported goods really originate in countries covered by the EU's preferential trade arrangements, thereby making them eligible for a preferential customs tariff. The current rules of origin, which date back to the 1970s, have been criticised for being too complex, too stringent and out-of-date.

The Regulation adopted by the Commission today will considerably simplify the rules of origin so that they are easier for developing countries to understand and to comply with. The new rules take into account the specificities of different sectors of production and particular processing requirements, amongst other things. In addition, special provisions are included for Least Developed Countries (LDCs) which would allow them to claim origin for many more goods which are processed in their territories, even if the primary materials do not originate there. For instance, an operator in Zambia that produces and exports plastics to the EU will benefit from the new rules of origin, because even with up to 70% of foreign input the exported plastics can still be considered as originating from Zambia. These new rules should greatly benefit the industries and economies of the world's poorest countries.

The proposal also puts forward a new procedure for demonstrating proof of origin, which places more responsibility on the operators. From 2017, the current system of certification of origin carried out by the third country authorities will be replaced by statements of origin made out directly by exporters registered via an electronic system. This will allow the authorities of the exporting country to re-focus their resources on better controls against fraud and abuse, while reducing red-tape for businesses. The new rules of origin will apply from 1 January 2011.

News source: EU Press Room link: article