Gordon Wright Head Customs Security & Transit Matters

1. Gordon WrightHead Customs Security & Transit Matters IRU Road Transport Security Seminar Geneva, 17 September 2007

2. IRU Road Transport Security Seminar Approved Economic Operator (AEO): the Standards, the Accreditation Process, Challenges and Chances for Transport Operators and their Associations

3. Background to AEO programs • Customs Simplification Procedures for 30 years • Customs Security & Safety since 2001 • WCO SAFE Framework

4. WCO AEO Guidelines • Conditions and requirements for Customs and AEOs

5. WCO AEO Guidelines • Demonstrated Compliance with Customs Requirements • Satisfactory System for Management of Commercial Records • Financial Viability • Consultation, Co-operation and Communication • Education, Training and Awareness • Information Exchange, Access and Confidentiality • Cargo Security

6. WCO AEO Guidelines • Conveyance Security • Premises Security • Personnel Security • Trading Partner Security • Crisis Management and Incident Recovery • Measurement, Analyses and Improvement

7. WCO AEO Guidelines • Benefits to the Authorized Economic Operator • Measures to expedite cargo release, reduce transit time and lower storage costs • Providing access to information of value to AEO participants • Special measures relating to periods of trade disruption or elevated threat level • First consideration for participation in any new cargo processing programmes

8. WCO AEO Guidelines • The WCO SAFE Framework and the AEO Guidelines do not contain an implementation mechanism • Three options for implementation: • Unilateral (e.g. US C-TPAT) • Bilateral (e.g. EU Security Amendments) • Multilateral (e.g. Via an International Instrument – TIR Convention)

9. AEO implementation program in the EU • EU – Example of a Customs Union implementing an AEO Program • Note : EU Commission & Parliament have primary responsibility for the EUs Customs Code and its Implementing Provisions • Supported by Member States Customs Code • Implementation commences as of 1 January 2008 • Part of EU “Security Amendments” to the EU Customs Code and Implementing Provisions

10. AEO program in the EU • An EU AEO Applicant must apply for AEO certification in an EU Member State where: • The applicants accounts relating to Customs arrangements are held • At least part of operations to be covered by the AEO certificate are conducted Or • The applicants accounts relating to Customs arrangements are accessible in the applicants computer system • The applicants general logistical management activities are conducted • At least part of operations to be covered by the AEO certificate are carried out

11. AEO program in the EU • Mutual Recognition of other AEO Programs • In cases where an International agreement exists with the EU • US C-TPAT • EFTA • China

12. AEO program in the EU • 3 AEO Certification Programs : Simplification, Safety and Security or Both • an AEO certificate — Customs simplifications; • an AEO certificate — Security and safety in respect of economic operators requesting to benefit from facilitations of customs controls; • an AEO certificate — Customs Simplifications/security and safety, in respect of economic operators requesting to benefit from the simplifications and facilitations; • The customs authorities shall take due account of the specific characteristics of SMEs.

13. EU AEO Guidelines • Guidelines published June 2007 • To be introduced by all EU Member States • Sets out criteria to be met for all 3 Certifications Programs

14. EU AEO Guidelines • Road Transport operators will need to meet 90 criteria • Company's information • Compliance record • Applicants accounting and logistical system • Financial solvency • Safety and Security requirements

15. EU AEO Guidelines • Benefits for AEOs in the EU • Lower risk rating • Less administrative and physical examinations at the borders • Priority examinations at borders • Reduced data set requirements for pre-arrival/departure summary declarations • Commercial advantage of having AEO status

16. EU AEO Guidelines • Accreditation of the 3 AEO Certification Programs • Done by National Customs Administrations • Or Experts • Financial Institution • Inspection Agencies • Security Companies • Any other entity demonstrating the required competencies • Associations

17. EU AEO Guidelines • Associations in the AEO accreditation process • Have proven knowledge TIR Holder accreditation – similar to AEO • Are trusted partners of Customs Administrations • Have the clearest understanding of the international road transport sector • Have similar mechanisms in place to manage AEO accreditation processes

18. Electronic TIR Pre-Arrival/Departure Summary Declarations IRU’s NCTS/TIR Web Application

19. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application • OBJECTIVES • Meet Summary Declaration requirements foreseen in the Implementing Provisions of the revised EU Customs Code • Meet the data requirements in the EU “security Amendments”; • Comply with the WCO Framework of standards • Resolve the non circulation of green Volets (2) in the European Union; • Allow the TIR Carnet Holder to proceed without the intervention of third parties and associated additional costs; • Provide requisite security of data in a public / private partnership;

20. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application • FORESEEN REQUIREMENTS • 1st January 2009 • Mandatory legal requirement to send TIR information electronically to the EU Customs office of departure/entry before leaving/entering the EU; • 1st July 2009 • Mandatory requirement for Safety and Security Information « EU Security Amendments » to be sent electronically in advance of TIR trucks departing/entering the EU

21. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application • FORESEEN OPTIONS • National EU Holders • Maybe connected to NCTS in their home country national software available • Holders voluntary decide to use third parties - Business Decision • e.g. Customs’ Agents, Freight Forwarders • IRU NCTS/TIR Web Application • Holder not having access to NCTS (e.g. non EU Holders), nor wishing to use third parties and pay additional costs.

22. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application 1 1 2 2 TIR • TIR • Customs Declaration • Guarantee NCTS/TIR Pre-declaration Madrid

23. Secured access provided by the IRU Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application www.nctstir.org

24. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application Data crosschecked and validation against the TIR Carnet Database

25. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application Data from the Cover Page of the TIR Carnet

26. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application Data from the accompanying document ( CMR) To capture the information related to the Goods

27. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application Data from the Yellow Goods Manifest (inc. precise Goods description) of the TIR Carnet To mention the accompanying document to the TIR Carnet

28. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application Selection of the EU countries and EU approved Customs offices of entry/departure and exit/destination

29. Electronic TIR Pre-Arrival/Departure Summary declarationIRU’s NCTS/TIR Web Application • Encourage TIR Carnet holders to use the Electronic TIR Pre-Arrival/Departure Summary declaration (NCTS/TIR) web application • Education • Training • Awareness

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