1. Workshop on Post Clearance NON FISCAL CUSTOMS AUDIT CAIRO 12 – 14 April 2010

2. DUAL – USE GOODS Dual use goods are products and technologies normally used for civilian purposes but which may have military applications.

3. DUAL – USE GOODS LEGAL BASIC Council Regulation (EC) No 1334/2000 setting up a Community regime for the control of exports of dual-use items and technology list of dual use.pdf Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items

4. DUAL - USE GOODS - RISKS The risk connected to dual-use goods is that restricted products are being exported to prohibited destinations. For different reasons, operators choose to go ahead with deals in spite of the regulations. The reason could be financial gain, dedication to a political goal or pressure (such as threats).

5. DUAL - USE GOODS CHECKS TO BE DONE To check this area, two different approaches can be chosen. The auditor can focus on the suppliers/manufacturers of certain products that could be in the list, and examine their export. The alternative is to work with strategic analyses based on intelligence, where several national and EU authorities work together.

6. DUAL - USE GOODS CHECKS TO BE DONE W ithin the audit is good to focus on  other business documents like order books  correspondence  technical specifications  contracts  transportation route

7. DUAL - USE GOODS CHECKS TO BE DONE Identification of persons It is necessary to gather as many documents to show who the goods ordered and paid (in particular the e-mail orders, orders for letterhead paper, various documents and instructions relating to transport)

8. DUAL - USE GOODS CHECKS TO BE DONE Examination of business relationships and payment transactions  findings on the basis of contracts which the operation is performed  check payment transactions (who paid the way through which banks)  authentication services (when the goods leave the area of the state, check requisitions from stock, AWB, or other documents related to transport)

9. DUAL - USE GOODS CHECKS TO BE DONE Identification of exported goods  determine which goods were exported (manuals, technical descriptions, photo documentation)  ¨in what amounts (invoices, issue slips from store documents related to transport)  in which the value of goods exported (invoices, issue slips from store documents related to transport)

10. INTERNATIONAL INTERNATIONAL SANCTION There are three types of sanctions.  Diplomatic sanctions -  Diplomatic sanctions - the reduction or removal of diplomatic ties, such as embassies.  Economic sanctions -  Economic sanctions - typically a ban on trade, possibly limited to certain sectors such as armaments, or with certain exceptions (such as food and medicine)  Military sanctions -  Military sanctions - military intervention

11. INTERNATIONAL SANCTION Diplomatic sanction

12. INTERNATIONAL SANCTION Economic and financial sanctions

13. INTERNATIONAL SANCTION Military sanction

14. INTERNATIONAL SANCTION Objectives of the application of sanctions  maintain international peace and safety  protection of human rights  combating international terrorism

15. INTERNATIONAL SANCTION Types of sanctions and restrictive measures  diplomatic sanctions (expulsion of diplomats, severing diplomatic relations, the suspension of an official visit)  suspension of cooperation with third countries  boycott of sporting and cultural events  trade sanctions (general or specific trade sanctions, arms embargoes)

16. INTERNATIONAL SANCTION Types of sanctions and restrictive measures  financial sanctions (freezing of funds or economic resources,  prohibition of financial transactions,  restrictions on export credits or investment)  flight ban  restrictions on entry

17. INTERNATIONAL SANCTION Who are imposed sanctions or restrictive measures?  governments of third countries  non-state actors (eg. terrorist groups)  individuals (natural or legal persons)

18. INTERNATIONAL SANCTION Control activities Customs Administration Surveillance activities are carried out in particular:  Customs Clearance  Post clearance audits

19. INTERNATIONAL TRADE IN MILITARY EQUIPMENT

20. RankCountrySpending ($ b.)World Share (%) — World Total1464.0100 1 United States 607.041.5 2 China 84.9 a a 5.8 a a 3 France 65.74.5 4 United Kingdom 65.34.5 5 Russian Federation Russian Federation 58.6 a a 4.0 a a 6 Germany 46.83.2 7 Japan 46.33.2 8 Italy 40.62.8 9 Saudi Arabia 38.22.6 10 India 30.02.1

21. INTERNATIONAL TRADE IN MILITARY EQUIPMENT Regulation of trade in military materials in the EU  Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment  Common Military List of the European Union - equipment, subject to Council Common Position 2008/944/CFSP

22. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Calibre weapons

23. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Large calibre weapons

24. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Special weapons

25. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Ammunition

26. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Bombs, torpedoes, missiles and mines

27. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for military equipment Military explosives and fuels

28. INTERNATIONAL TRADE IN MILITARY EQUIPMENT What is considered for other military equipment  tanks, armoured vehicles and other,  aircraft and helicopters,  missiles, and their specially designed parts,  warships.

29. INTERNATIONAL TRADE IN MILITARY EQUIPMENT Control takes place in three stages  Before carrying out trade (Provisional)  Within ongoing trade (Ongoing)  Post-trade (Subsequent)

30. AIRSOFT GUNS FIRST SHORT INTRODUCTION

31. AIRSOFT GUNS WHAT IS IT AIRSOFT ? GAME ? Airsoft is an activity used primarily for recreation where replica firearms shooting 6mm or 8mm plastic rounds are used for personal collection, gaming (similar to Paintball), or professional training purposes (Military Simulations and Police training exercises) airsofty.mpeg airsofty.mpeg

32. AIRSOFT GUNS SOME TYPES OF AIRSOFT GUNS

33. AIRSOFT GUNS SOME TYPES OF AIRSOFT GUNS

34. AIRSOFT GUNS SOME TYPES OF AIRSOFT GUNS

35. AIRSOFT GUNS CUSTOMERS In accordance in rules EU is not to allowed to sell the airsoft guns the persons under eighteen years of age. …..and reality …. AIRSOFT GAMES.JPG

36. AIRSOFT GUNS The sales of the airsoft guns to a large extent conducted by the Asian marketplace. Unfortunately, here are not sold only "baby arms" for little money, but they are here to sell electric gun firing at a dose. Test result of these weapons can be seen here

37. AIRSOFT GUNS

38. AMMUNITION

39. AIRSOFT GUNS Do you recognize the right weapon ?

40. AIRSOFT GUNS WHY POST CLEARANCE CONTROLS ? The imports of the Airsoft have incorrect tariff classification as: Toys (weapons), 9503 - 0% duty rate No 9506 - Sports goods - duty rate of 2.7% or not at all - 0% duty rate The correct tariff classification has be: Other weapons No 9304 - 3.2% duty rate There is a customs evasion !!!!!!!!!

41. AIRSOFT GUNS WHY POST CLEARANCE CONTROLS ? In this context, there is another duty evasion - laser sighting

42. AIRSOFT GUNS WHY POST CLEARANCE CONTROLS ? Such devices are commonly wrongly declared as laser pointers.

43. AIRSOFT GUNS And if the sights are component part of the weapons, are not declared at all.

44. AIRSOFT GUNS WHY POST CLEARANCE CONTROLS ? In the EU, there are very strict rules regarding sights for release to free circulation. Mostly it is necessary to have special licence for importing such a goods. Safety of the goods and safety citizen of the EU.

45. QUESTIONS

46. THANK YOU FOR YOUR ATTENTION PETR SCHUMMER HEAD OF THE DEPARTMENT OF INTEGRATED CONTROLS GENERAL DIRECTORATE OF CUSTOMS CZECH REPUBLIC mail.: p.schummer@cs.mfcr.cz