Speech Bolkestein: nieuw douanebeleid garandeert meer veiligheid en betere procedures" (en)

Mr. Chairman, Ladies and Gentleman,

It is almost two years since the U.S. Customs introduced the Container Security Initiative to improve the security in the maritime transport of containers. The massive flow of containers around the world makes global maritime transport an essential part of the world economy and makes it almost impossible to picture the disastrous consequences which a terrorist attack would have on global freight supply systems. Borders would be closed; ships might not be allowed to enter ports, a complete disruption of the global supply chain with enormous consequences for the global economy.

Prior to September 11 2001, efforts to improve security focussed on the movement of illicit goods such as drugs and weapons, as well as the traffic in persons. The terrifying events on September 11 made the logistical world realise that the supply chain is vulnerable and a possible target to be used for terrorist activities such as the transport of Weapons of Mass Destruction and explosives. U.S. customs were the first to take initiatives, introducing measures to improve the security in the supply chain and to protect the U.S. homeland against these threats. The European Commission welcomed these initiatives but at the same time was convinced that only international co-operation between governments and full involvement of the business, based on mutual trust could bring solutions to increase on a reciprocal basis the security in the global transport of goods. In addition it is also important to ensure that the internal market dimension is fully taken into account.

I am pleased that we have now moved forward from our earlier differences with the US and welcome the fact that the European Community will soon formally sign an agreement with the United States to expand our customs co-operation by introducing efficient and effective control measures to improve the security of transatlantic maritime transport of containers. The implementation of these measures will certainly increase the security of the global supply chain.

Working with partners such as the US to help secure the supply chain is one thing, but we have an even bigger responsibility when it comes to protecting the Community and its citizens from terrorist threats and from the increasing traffic in goods dangerous to health and safety. We have been active in this respect. On 24 July the Commission proposed a package of measures to improve security and yet maintain the trade facilitation advantages that a modern customs system must offer.

The first measure included in the package was a Communication to Council and Parliament on a greater role for customs in managing security at the EU's external border. Because of the need for quick action, we took the unusual step of proposing, at the same time, a change to the Community Customs Code.

It is of the greatest importance to strike the right balance between the need for greater security and the legitimate concerns of traders regarding obstacles to legal trade. There is no point in having the greatest security controls in the world if they simultaneously kill off trade. It is for this reason that the Communication on border management was accompanied by another Communication introducing an action plan proposing more effective customs procedures through simplification of customs legislation and better use of information technology.

On 4^th November 2003, the EU's Council of Finance Ministers endorsed the Commission's approach to improve security and this will help to provide greater protection at the EU border against illegal and unsafe goods, whilst allowing legitimate trade to flow smoothly.

I would like to recall that the European Union has another important strategic objective set by the Lisbon European Council in March 2000: "the European Union should 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 properly functioning Internal Market. The free movement of goods and avoidance of the risk of distortion are important elements for the functioning of our Internal Market. It is for those reasons that we have to ensure that controls done at the external frontier are carried out in a harmonised way. This requires customs procedures and controls to be applied at an equal level by the 15 and shortly the 25 customs administrations. Introducing different measures or different levels of control create discrimination between ports and airports and runs counter to our EU's trade and transport policies, which are based on equal treatment across the Community.

With the "package" the Commission proposes to the Member States to rationalise controls and to concentrate on security and safety controls at the moment of entry or exit of the territory of the Community. The fiscal and commercial aspects of controls should be moved inland, close to the importer's premises. For the first time ever, customs controls across the Community will be based on common risk criteria for the selection of goods. At the same time controls will be made more efficient and less intrusive via the increased use of modern equipment such as container scanners and nuclear radiation detection instruments.

To support efficient controls on security aspects the harmonisation of pre-arrival information is essential. In the proposals to change the Community Customs Code the EU is proposing a 24-hour rule. The principle will be that cargo information should be provided to the customs authorities 24 hours before the goods arrive in the EU. This is very different to the US measures, which require advance cargo information 24 hours before loading in the country of export.

The proposal is currently under discussion in the Council where it appears already that derogations on the general rule have to be fixed for the different modes of transport. As soon as the Council has accepted the legislative proposal on pre-arrival information we will start a consultation process with the major stakeholders to discuss the different timeframes, practicable for the different modes of transport, before we finalize the implementing rules.

Together with the pre-arrival information, the proposed legislation will require information 24 hours before loading for export from the EU. Although this will introduce changes to EU exporters, the legislation already foresees in derogations for certain types of traffic and authorised economic operators. The advanced collection of the information is necessary to support security controls to be carried out for third country customs administrations. Reciprocity will be a fundamental part of our security efforts and we will use customs co-operation agreements to reinforce this approach.

Standardisation of pre-arrival information is necessary. Timeframes might differ but the set of data should be harmonised. Within the World Customs Organisation, standards have been discussed and agreed upon.

Introducing security aspects in customs controls, and, where necessary, increasing the number of controls and the use of scanning equipment at the borders might improve the security in the supply chain but we have to be careful it does not decrease the logistical efficiency.

Facilitation of the legitimate trade has to be given the utmost importance in every step we take to improve supply chain security. Two sectors with different objectives - supply chain managers moving goods quickly while trying to keep costs to a minimum and customs officers doing thorough security controls - need to interact. Customs administrations have long experience in co-operating with the trade. We must not lose the hard fought gains we have made on trade facilitation within the European Union. As we introduce security controls, we should not cast aside our existing and longstanding facilitation measures, such as simplified customs procedures.

One specific measure we propose in the latest change to the Community Customs Code is designed to help legitimate business cope in a more stringent trading environment. This concerns the new notion of Authorised Economic Operators. Authorised operators would receive trade facilitation and simplifications in return for their meeting predetermined criteria which ensure proper and secure conduct of their logistic operations. The Commission foresees not only importers and exporters to be authorised operators, as the current situation is, but opens the concept to all stakeholders in the supply chain. Of particular interest for you would be the possibility for freight forwarders and customs agents to apply for Authorised operator status.

I have given you a brief overview of what we are doing in the customs area to improve supply chain security whilst keeping business going, but this is only one part of the Commission's work in improving security. The Commission has also presented a Communication and draft legislation to introduce security standards on ports and ships to implement the conclusions of the International Maritime Organisation. Other ongoing transport initiatives, especially concerning aviation security, have also to be taken into account.

Another area of interest for all of us is of course enlargement. Increased transhipments through the territory of the EU calls for improved co-operation with our new neighbours. We would like to develop a more integrated border management, which will lead to common standards of controls, common understanding of risk management and each other's procedures.

Our overall approach is to seek solutions via international co-operation of customs administrations, where we would have to agree on mutual recognition of control standards, authorised trader initiatives and rely on the implementation of these measures. This form of burdensharing requires mutual confidence but will also provide a sustainable solution to a long-term problem.

This global approach means the Commission contributes to ongoing multilateral initiatives, such as the WCO's task force on security and facilitation of the international supply chain and the G 8 transport security action plan. This is consistent with our commitment to increase security in the entire supply chain, from supplier to consumer.

All stakeholders, including freight forwarders, have to take their responsibilities in developing and implementing measures to ensure a secure transport of goods throughout the world. Control measures, logistical procedures, customs processes have to be re-developed in close consultation with all stakeholders, respecting each other's needs and objectives. Solitary, unilateral initiatives will only bring burdens and unnecessary obstacles in the transport of goods, which would only raise costs and slow down the logistic process.

Thank you for your attention.