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current rules of origin, which date back to the 1970s, have been criticised for being too complex, too stringent and out-of-date.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

Travelling without borders: Commission proposes stronger monitoring of respect of Schengen rules

In the EU, citizens can travel without border controls within the Schengen area. But obstacles to the free movement, such as maintenance of obstacles to fluid traffic flow at road crossing-points at internal borders, remain because Schengen rules are not always correctly applied by the Member States. That is why the Commission wants to verify more closely the respect of the Schengen rules. A new proposal adopted today by the Commission seeks to strengthen the mechanism for evaluating the correct application of the Schengen rules in the Member States. It will allow the Commission to better verify the relevant legislation on the abolition of controls at internal borders and to do more effective checks within national territory.

Commissioner Cecilia Malmström, responsible for Home Affairs, highlighted that: "The Schengen area gives people the possibility to travel without border controls. But in order for the system to work, efficient application of all Schengen provisions and a high degree of mutual trust among the actors are essential. Only if the Schengen rules and regulations are applied effectively, consistently and in a transparent manner by the Member States can European citizens fully benefit from the free movement."

A specific evaluation mechanism is necessary to ensure both mutual trust between Member States and the capacity to effectively and efficiently apply all Schengen provisions. The evaluation mechanism sets up transparent, efficient and clear rules on the method to be applied for the evaluations. In particular, the evaluation should pay attention to the respect of fundamental rights when applying the Schengen acquis. The proposal covers all parts of the Schengen cooperation, in particular external borders, visa policy, police cooperation and the Schengen Information System.

The new mechanism enhances the current system of periodic on-the-spot inspections in the Member States and introduces unannounced visits to ensure that Schengen rules are applied correctly at all times. The proposal introduces multiannual evaluation programmes for the on-site visits and provides clear rules for the follow-up to the findings of the evaluations.

The revised mechanism reflects the changes in the legal situation after the integration of the Schengen rules into the framework of the EU and the entry into force of the Lisbon Treaty. The European Parliament and the Council will decide together on this proposal.

News source: EU Press Room link: article