The massive flow of containers around the world makes
global maritime transport an essential part of the world economy,
and renders it almost impossible to picture the disastrous consequences
that a terrorist attack could have on global freight supply
systems. Borders could be closed, ships might not be allowed to
enter ports, and the global supply chain could be disrupted, with
enormous consequences for the world economy.
After some initial differences of view, the European Union and
the United States are now actively cooperating to tackle this problem,
particularly with a view to improving the safety of container
shipments, on which the two parties signed an agreement in April. The aim is to expand
Transatlantic customs cooperation by introducing efficient and effective control
measures to improve the security of maritime container transport. These measures are
to be extended beyond the biggest European ports to include other ports in both old
and new EU member states. A partnership of this type, between the world's two most
important trading blocs, will certainly increase the security of the global supply chain.
Working with the United States to
achieve these objectives is an excellent
thing, but we have an even bigger responsibility
to protect the European
Union and its citizens from terrorism
and other threats. Our customs services
also have a pivotal role in protecting the
European Union's external frontiers
against the increasing traffic in goods
that are dangerous to health and safety.
To this end, the Commission has
proposed a package of measures to improve
security and yet maintain the
trade facilitation advantages that a modern
customs system must offer. The
measures include a greater role for customs
in managing security at the European
Union's external border, and,
because of the need for quick action,
changes in the Community Customs
Code.
It is of the greatest importance to
strike the right balance between greater
security and the legitimate concerns of
traders that unnecessary obstacles may
be placed in the way of legal trade. There
is no point in having the greatest security
controls in the world if they kill off
trade. It is for this reason that the Commission
is also proposing an action plan
for making customs procedures more effective
by simplifying customs legislation
and making better use of information
technology.
The Commission is currently working
to provide the public with greater
protection at the EU border against illegal
and unsafe goods, while allowing legitimate
trade to flow smoothly. New security
controls have to go side-by-side with
measures to increase supply chain efficiency.
Introducing security measures in
customs controls, and, where necessary,
increasing the number of controls and the
use of scanning equipment at the borders,
may improve security in the supply chain,
but we must be careful that such actions
do not reduce logistical efficiency.
Facilitation of legitimate trade has to
be considered in every step we take to
improve supply chain security. It has
been a longstanding EU policy to simplify
customs procedures for legitimate
traders, and we should not abandon
these measures as we introduce new security
controls.
One specific change we are proposing
in the Community Customs Code introduces
the concept of authorized economic
operators, who would benefit from
easier, simplified procedures in return for
meeting predetermined security criteria.
The status of authorized operator could
be granted not only to importers and exporters,
but to all participants in the supply
chain, including freight forwarders
and customs brokers.
Cooperation among U.S. and EU
customs experts under the recent EUU.
S. agreement will be important in
achieving equal levels of controls at all
borders. The work of these expert
groups will give significant added value
to the measures the European Union is
currently developing. EU customs experts
will work with their American colleagues
to develop common measures,
such as risk indicators for selecting cargo
for inspection and minimum control
standards. In this way we shall be able to
prepare all EU ports for participation in
the U.S. Container Security Initiative, instead
of only major ports. It is also in the
interests of international trade, and certainly
of U.S. exporters, that we apply
common procedures and equal levels of
controls at all points of entry into the
European Union.
This is relevant to another important
strategic objective, set by EU leaders
in Lisbon in March 2000, which calls
for the European Union to become
"the most competitive and dynamic
knowledge-based economy in the world,
capable of sustainable economic growth
with more and better jobs and greater
social cohesion." This strategic goal can
only be achieved by a well-functioning
internal market, which requires the free
movement of goods and the avoidance
of any risk of distortions.
This is why we have to ensure that
controls at the EU external frontier are
carried out in a harmonized way. Following
the European Union's enlargement
to 25 members in May, we need to
improve cooperation with our neighbors
beyond our new border. We aim to develop
with them more integrated border
management systems, leading to common
standards of control, and common
understanding of risk management and
of each other's procedures.
Introducing different measures or
different levels of control creates discrimination
between ports and airports
and runs counter to EU trade and transport
policies, which are based on equal
treatment across the Union. The Commission
is asking the member states to
rationalize their procedures by concentrating
anti-terrorist and safety checks at
the EU border and moving fiscal and
commercial controls inland, closer to
the importer's premises. For the first
time, customs controls throughout the
European Union will be based on common
risk criteria. At the same time, controls
will be made more efficient and
less intrusive by increased use of
modern equipment, such as container
scanners and nuclear radiation detection
instruments.
To support efficient security controls,
it will be essential to harmonize
pre-arrival information. Among other
changes to the Community Customs
Code, the Commission is proposing that
cargo information should be provided to
customs authorities before goods arrive
in the European Union. This is different
from the U.S. measures, which require
advance cargo information 24 hours before
loading in the country of export.
Together with the pre-arrival information,
the proposed legislation will also
require information before loading for
export from the European Union. Although
this will mean changes for EU
exporters, the legislation provides for exceptions
for certain types of goods and
for authorized economic operators. The
advance collection of this information is
necessary to facilitate security controls
by customs administrations in countries
outside the European Union. Reciprocity
will be a fundamental part of our security
efforts and we will use customs cooperation
agreements to reinforce this
approach.
Before the terrorist attacks of September
11, 2001, efforts to improve security
focused on the movement of illicit
goods, such as drugs and weapons, as
well as trafficking in persons. One consequence
of the attacks was the realization
that the supply chain is vulnerable to terrorist
action, as it is quite fragmented
and many different actors are involved.
All these actors customs, carriers, customs
brokers, freight forwarders and so
on have to take their responsibilities in
developing and implementing measures
to ensure the secure transport of goods
throughout the world. Such measures
have to be agreed in close consultation
among all the participants, all of whose
needs must be respected. Unilateral initiatives
would place unnecessary obstacles
in the way of the transportation of
goods, slow down the logistical process
and raise costs.
Robert Verrue is Director General for Taxation & Customs Union at the European Commission.
He was previously Director General for Information Society, from 1996 to 2002, and Deputy Director
General for External Relations with the Central European countries and CIS Republics,
from 1993 to 1995. Before that, he was Director for Industrial Affairs and the Internal Market.
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