Gordon Wright Head Customs Security & Transit Matters IRU Road Transport Security Seminar Geneva, 17 September 2007 Gordon Wright Head Customs Security & Transit Matters © International Road Transport Union (IRU) 2007

IRU Road Transport Security Seminar Approved Economic Operator (AEO): the Standards, the Accreditation Process, Challenges and Chances for Transport Operators and their Associations © International Road Transport Union (IRU) 2007

Background to AEO programs Customs Simplification Procedures for 30 years Customs Security & Safety since 2001 WCO SAFE Framework © International Road Transport Union (IRU) 2007

WCO AEO Guidelines Conditions and requirements for Customs and AEOs © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

WCO AEO Guidelines Conveyance Security Premises Security Personnel Security Trading Partner Security Crisis Management and Incident Recovery Measurement, Analyses and Improvement © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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) © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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. © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

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 © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Arrival/Departure Summary Declarations IRU’s NCTS/TIR Web Application © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Arrival/Departure Summary declaration IRU’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; © International Road Transport Union (IRU) 2007

FORESEEN REQUIREMENTS Electronic TIR Pre-Arrival/Departure Summary declaration IRU’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 © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Arrival/Departure Summary declaration IRU’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. NCTS – TIR Pre-declaration OPTIONS Presently there are different options that the transport operator can choose: The first available option is to present himself at the customs office of entry into the EU or the customs office of departure in the EU, where all the information related to the TIR Carnet will be captured by the customs officer: Data capture at Customs Offices – Current The second option is to use the possible available software provided either by the national customs authorities or its national association, though this option favors EU holders : National EU Holders – Current Maybe connected to NCTS in their home country national software available The third available option is to voluntary use the services of a third party: Holders voluntary decide to use third parties - Business Decision – Current Finally the last option is to provide the transport operator with a tool that would enable him to provide the information electronically without bearing additional costs and this tool is the IRU NCTS/TIR Web application. It is destined for non EU holders, holders that are not connected and that wish to use a service free of charge. IRU NCTS/TIR Web Application – Imminent Non connected holders, specially from the non EU countries, not wishing to use third parties and not willing to suffer additional costs. © International Road Transport Union (IRU) 2007

NCTS/TIR Pre-declaration Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application TIR Customs Declaration Guarantee TIR 2 1 NCTS/TIR Pre-declaration Madrid © International Road Transport Union (IRU) 2007

Secured access provided by the IRU Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application www.nctstir.org Secured access provided by the IRU © International Road Transport Union (IRU) 2007

Data crosschecked and validation against the TIR Carnet Database Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application Data crosschecked and validation against the TIR Carnet Database © International Road Transport Union (IRU) 2007

Data from the Cover Page of the TIR Carnet Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application Data from the Cover Page of the TIR Carnet © International Road Transport Union (IRU) 2007

Data from the accompanying document ( CMR) Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application Data from the accompanying document ( CMR) To capture the information related to the Goods © International Road Transport Union (IRU) 2007

To mention the accompanying document to the TIR Carnet Electronic TIR Pre-Arrival/Departure Summary declaration IRU’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 © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Arrival/Departure Summary declaration IRU’s NCTS/TIR Web Application Selection of the EU countries and EU approved Customs offices of entry/departure and exit/destination © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Arrival/Departure Summary declaration IRU’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 © International Road Transport Union (IRU) 2007

www.iru.org © International Road Transport Union (IRU) 2007