It is indispensable for a single market economy to have strong external borders in order to safeguard itself from the influx of illicit goods, terrorism and organised crime. With such objectives in mind, the European Commission has recently adopted a new strategy in order to remedy loopholes in the current EU’s customs risk management system.

The new strategy builds on a 2005 initiative which had seen the introduction of the electronic exchange of information on movement of goods between different Customs authorities, required traders to provide Customs authorities with information on goods through electronic summary declarations and introduced an EU-wide computerised system for risk management.

The Commission has now identified a number of priorities where action is needed in order to achieve a more effective and efficient EU-wide Customs. Such changes are necessary in view of an increase in trade and changes in the structure of the international supply chain. The key players in bringing about such change have been identified as being the European Commission itself, the member states as well as economic operators.

The main focus of the new strategy is on efficient controls and risk mitigation.

The Commission realised that adjustments need to be made to certain legal, procedural and IT systems, such as the IT systems that process entry summary declarations (ENS). Such changes are necessary to ensure that EU Customs always have at hand high-quality, timely information on goods entering and leaving the EU.

Mechanisms will also be put in place to improve the availability of data and the sharing of risk-relevant information among Customs authorities throughout the entire control process. This is particularly important in order to ensure that controls are carried out at the right time and place and are not duplicated by Customs authorities.

The need for Customs to work closely with other law enforcement authorities has also been identified, together with the need to further develop the partnership between customs and reliable traders, particularly through the promotion of the EU Authorised Economic Operator (AEO) programme.

The main focus of the new strategy is on efficient control and risk mitigation

The European Union had introduced the concept of AEO in order to counteract the impact on the flow of trade brought about by more stringent controls introduced after the September 11 terrorism acts in the US. Any traders certified as an AEO are given benefits that lessen the impact of the new security measures compared to other non-AEO approved businesses. Member states can grant AEO status to trusted traders which meet compliance, security, safety and financial solvency standards and such status is recognised by other member states. The Commission has now seen it necessary to enhance the implementation of the current AEO programme.

The Commission has also insisted on the implementation of common risk criteria across all member states and has shown its willingness to offer EU support in order to identify and address differences between member states in their custom risk management systems.

Customs authorities play an indispensable role in ensuring the safety and security of the EU market as well as that of its citizens, safeguarding the interests of legitimate traders and protecting the EU’s financial interests.

Attaining such objectives while at the same time ensuring the smooth flow of trade is no mean feat. With 300 million declarations to process and €3.5 trillion worth of trade in goods to supervise every year, it is of the utmost importance that EU customs make the best use possible of all resources available. An efficient risk management system permits custom authorities to identify where, when and how their controls are best deployed, and to respond effectively to the threats that do arise.

mariosa@vellacardona.com

Mariosa Vella Cardona is a freelance legal consultant specialising in European law, competition law, consumer law and intellectual property law.

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