1. POSTEUROP KIEV 01.09.2006

2. A NEW MODERNIZED CUSTOMS CODE ADOPTED 30.11.2005 in replacement of the CCCR (EEC) 2913/92 Objectives : -implement the e-Government initiative in the area of Customs; -streamline the customs procedures; -increase security and safety at the external border; -contribute to better coherence with other Community policies. CCIP still need to be finalised Due to be implemented by 2009

3. Changes for Posts - Electronic customs declarations become a legal requirement (Regulation(EC) n°648/2005 of 13 April 2005). - Authorised Economic Operator (AEO) status is created to improve safety and security of international supply chain by only allowing accredited operators (all modes of transport) to have access to simplified customs procedures (Regulation(EC) n°648/2005 of 13 April 2005). - The same customs procedures are imposed on postal operators as for all other operators i.e transfer responsibility for customs clearance from the customs authority to the postal operator

4. Electronic customs declarations Electronic customs declarations become a legal requirement but postal items are exempted from the requirement to provide pre-arrival and pre-departure information in advance Article 181c CCIP (Doc TAXUD/1250/2005 REV 7 8 August 2006 The following goods need not be covered by an entry summary declaration - letters,postcards and printed matter, including on electronic medium; - goods moved under the rules of the Universal Postal Union Convention Annex 30A provides with data elements for postal and express consignments

5. Electronic customs declarations Wherever possible customs declarations should be made in electronic format in advance of the items being exported Electronic and paper based customs declarations will continue to operate side by side but eventually all operators will have to migrate to electronic declarations Responsibility for capture and transmission of customs data will inevitably be transferred to postal operators in the country of export Exporting postal operators not providing customs declarations in electronic format may be faced with increased customs clearance charges by importing postal operators to cover their additional costs of data capture LIKELY CHANGES FOR ALL POSTAL OPERATORS

6. The Authorised Economic Operator (AEO) status THE MAIN ADVANTAGES reduced time period for the lodgement of the summary declarations; reduction of the security and safety data elements. NO OPERATIONAL ADVANGE FOR POSTS A QUALITY CRITERION ATTRACTIVE IN INTERNATIONAL TRADE RELATIONS

7. CAN EU POSTS GAIN AEO STATUS? THE OBJECTIVE OF THE COMMUNITY SECURITY INITIATIVE SECURE THE COMPLETE SUPPLY CHAIN Manufacturer, exporter, carrier, importer = secure operators

9. Transferring to Posts customs clearance responsibility In recognition of their social responsibilities, to provide a universal postal service under the UPU Convention postal operators are able to access a range simplified customs clearance procedures. Postal customs procedures as agreed between the UPU and WCO are available to national postal operators in UPU member countries. The sender (exporter) is responsible for completing the customs declaration but Postal operators collectively have an obligation to maintain the integrity of the global postal network. All postal items containing goods must be accompanied by a fully and accurately completed customs declaration (CN22/CN23). The legal basis for postal customs clearance is an “oral declaration”.

10. Transferring to Posts customs clearance responsibility Legal basis for simplified procedures in EU = Art. 237/238 CC-IP The last document TAXUD/798/2003-Rev.4 of 4 May 2005 is currently still prevailing Work on the suggestion has been put back until the adoption of security changes in the CC-IP. The aim is still to have a three year transition period for the introduction of the changes after the requirements have been clearly defined.

11. The VAT relief threshold abolishment EC current proposal to eliminate VAT relief thresholds (22€/45€) Any reduction in VAT de minimus on commercial items would be a significant additional factor increasing the number of imports liable to tax and therefore the workload of EU postal operators

12. The POSTEUROP’s CUSTOMS WORKING GROUP Provide forum for exchange of information on customs issues. Provide expert advice. Engage direct dialogue with the EC. Participate to Customs Committee Code meetings representing the interests of postal operators in ongoing discussions with the EC Decision on the exact timing of the transfer of responsibilities from EU customs authorities to postal operators will have to take account of both Posts and Customs capabilities - must be orderly not chaos.

13. Development of customs EDI MEDICI project team of postal operators from Australia, Canada, Finland, Germany, Netherlands, UK and USA has been established to develop and test a customs EDI product for postal consignments Project management and technical expertise provided by IPC Standard UPU messaging systems will be used for customs EDI Burden of responsibility for capture of customs data transfer to the country of export Customs EDI may operate side by side with existing paper based customs declarations (CN22/CN23) for the foreseeable future Parcels and EMS are tracked products and therefore most likely to be the earliest to take advantage of customs EDI