1. Differences between customs brokers and customs carriers Differences between customs brokers and customs carriers Baku, April 8, 2016 TAIEX Workshop on the Functioning of the Customs Broker System

2. Differences between customs brokers and customs carriers Both the brokers and the carriers are the middlemen for business transactions. They are both responsible for transactions between a buyer and a seller or between two companies who have businesses between each other. Even though both are for business transactions, there are four significant differences between each other. Customs carries take care of movement of cargo - from one country in the world to another (through sea, air, rail or road) by acting as the middlemen between the shipping lines/airlines and the importer/exporter. Custom brokers may be employed by or affiliated with freight forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms.

3. Customs brokers Customs broking or customs brokerage is a profession that involves the "clearing" of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters. Custom brokers may be employed by or affiliated with freight forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms.

4. Customs brokers DUTIES  Sign documents on behalf of clients, using powers of attorney for communication with Customs.  Prepare and process import and export documentation according to Customs regulations, laws, or procedures.  Ensure customs guarantee.  Clear goods through customs and to their destinations for clients.  Classify goods according to tariff classification system.  Calculate duty and tariff payments.  Pay, or arrange for payment of, taxes and duties.

5. Customs brokers DUTIES  Monitor important changes in import or export laws or regulations by reading current literature, attending meetings or conferences, following customs website, etc.  Request or compile necessary import documentation, such as customs invoices, certificates of origin, and cargo-control documents.  Advise customers on import and export restrictions, tariff systems, insurance requirements, quotas, or other customs-related matters.  Monitor or trace the location of goods.

6. Customs brokers DUTIES  Arrange for transportation, warehousing, or product distribution of imported or exported products.  Inform importers and exporters of steps to reduce duties and taxes.  Contract with freight forwarders for destination services.  Apply for tariff concessions or for duty drawbacks and other refunds.  Provide advice on transportation options, types of carriers, or shipping routes.  Prepare papers for shippers to appeal duty charges.

7. Customs carries  The carrier is the person who brings the goods, or who assumes responsibility for the carriage of the goods, into the customs territory of the Community.  The carrier also means the person who will operate the means of transport which, after having been brought into the customs territory of the Community, will move by itself as an active means of transport.  In the case of maritime or air traffic under a vessel sharing or contracting arrangement, carrier means the person who has concluded a contract, and issued a bill of lading or air waybill, for the actual carriage of the goods into the customs territory of the Community.  Entry summary declaration (ENS) has to be lodged by carrier for goods brought into the customs territory of the Community,

8. Customs carries DUTIES  To ensure for importers, exporters or other companies to organize the safe, efficient and cost-effective transportation of goods.  To plan the most appropriate route for a shipment, taking account of the perishable or hazardous nature of the goods, cost, transit time and security.  To arrange appropriate packing, taking account of climate, terrain, weight, nature of goods and cost, and the delivery and warehousing of goods at their final destination.  To obtain, checking and preparing documentation to meet customs and insurance requirements, packing specifications, and compliance with other countries' regulations and fiscal regimes.  To offer consolidation services by air, sea and road, ensuring cost-effective and secure solutions to small shippers who have insufficient cargo to require their own dedicated units.

9. Customs carries DUTIES  To arrange insurance and assisting the client in the event of a claim.  To arrange payment of freight and other charges or collection of payment on behalf of the client.  To utilize e-commerce, internet technology and satellite systems to enable real-time tracking of goods.  To maintain communication and control through all phases of the journey, including the production of management reports and statistical and unit cost analysis.  To maintain current knowledge of relevant legislation, political situations and other factors that could affect the movement of freight.

10. Study case - Import

11. Study case – Community transit

12. Study case – Export

13. Trade facilitation Traditional tasks for Customs  customs supervision and checking goods within the import, export and transit procedure;  collection of tax and duty;  fight against smugglings;  supervision of compliance with trade regulations of the prohibitions and restrictions;  etc.

14. Trade facilitation A new role for Customs today -facilitate trade with minimum necessary physical controls on the one hand and - protect the interests of the citizens on the other hand The question is how to maintain a proper balance between customs controls and facilitation of legitimate trade.

15. Trade facilitation The ways how to achieve the balance between simplification of trade and customs controls  AEO certificates;  Simplification of customs procedures;  E – Customs clearance;  Partnership approach  Protection of economic interests;  Protecting citizens;  Effective risk assessment;  Effective customs controls

16. THANK YOU FOR YOUR ATTENTION PETR SCHUMMER CUSTOMS DEPARTMENT GENERAL DIRECTORATE OF CUSTOMS CZECH REPUBLIC mail.: p.schummer@cs.mfcr.cz