Explanatory Memorandum to COM(2011)937 - Union position within the EU-U.S. Joint Customs Cooperation Committee regarding mutual recognition of the Authorised Economic Operator Programme of the EU and the Customs-Trade Partnership Against Terrorism Program of the US - Main contents
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| dossier | COM(2011)937 - Union position within the EU-U.S. Joint Customs Cooperation Committee regarding mutual recognition of the Authorised ... |
|---|---|
| source | COM(2011)937  |
| date | 05-01-2012 |
1. EU legislation on the Authorised Economic Operator (AEO) was introduced by an amendment to the European Union's Community Customs Code (Regulation 648/2005 adopted in April 2005). The objective of trade partnership programmes such as the AEO is to provide facilitation to traders which demonstrate compliant efforts to secure their part of the international supply chain.
2. The AEO legislation came into force in January 2008. By October 2011 more than 4300 EU companies had been certified for security.
3. Mutual recognition of trade partnership programmes enhances end-to-end supply chain security and facilitates trade. It consolidates internationally the approach agreed in the World Customs Organization (WCO) Framework of Standards to Secure and Facilitate Trade ('SAFE Framework'). It also addresses the concerns of the business community to avoid proliferation of requirements and to standardise customs security procedures.
4. EU-U.S. relations in the area of customs are based on the Agreement on Customs Cooperation and Mutual Assistance in Customs Matters ('CMAA'), signed on 28 May 1997. According to the CMAA, the respective customs authorities undertake to develop customs cooperation covering all matters relating to the application of customs legislation.
5. Customs cooperation under the CMAA was expanded by the Agreement on intensifying and broadening the CMAA to include cooperation on container security and related matters, signed on 28 April 2004. Two expert working groups were then formed to focus on furthering joint efforts in security standards and comparing trade partnership programmes, respectively.
6. In 2006, the EU and U.S. agreed to assess the feasibility of establishing mutual recognition of their respective trade partnership programs.
7. In 2007 an in-depth comparison of both the U.S. and EU trade partnership programmes, namely the EU AEO and the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) programmes, was completed. A pilot program was launched in which the U.S. Customs and Border Protection (CBP) observed security components of the EU’s AEO audit process.
8. Following the in-depth comparison of the EU and U.S. trade partnership programmes, a Roadmap towards mutual recognition was adopted in March 2008, setting key performance-based stages required to reach mutual recognition. In January 2009, an abridged version of the Roadmap was made public.
9. On 25 June 2010, the Commission's DG Taxation and Customs Union ('DG TAXUD') and the U.S. CBP agreed on the Final Steps Towards the Implementation of Mutual Recognition Between the United States and the European Union, setting down the steps necessary and the timetable for completing mutual recognition.
10. A work programme was established in September 2010, and amended in September 2011, covering the process of joint validation and data exchange. A total of twenty seven joint validation visits in the EU and four joint validation visits in the U.S. were completed by 4 November 2011.
11. Mutual recognition of the EU and U.S. trade partnership programmes has been highlighted as a key cooperation project by the Transatlantic Economic Council; at its meeting of 29 November 2011, the Transatlantic Economic Council welcomed that the EU and the U.S. have completed the preparatory work on mutual recognition of their trade partnership programmes.
Contents
12. Member States were consulted in the framework of the Working Party on Customs Union of the Council of the European Union.
13. There is no need for an impact assessment insofar as the decision of the EU-U.S. Joint Customs Cooperation Committee ('JCCC') implements the CMAA and does not modify its substance.
14. The Council is asked to adopt a Union position on a draft decision of the JCCC based on Article 207 i first subparagraph, in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union ('TFEU').
15. The legal basis for the draft decision of the JCCC is laid down in Article 22 i point (c) of the CMAA.
16. The proposal falls under the common commercial policy, exclusive competence of the Union. The subsidiarity principle therefore does not apply.
17. The proposal has no direct implication for the Union budget.