=Paper=
{{Paper
|id=Vol-1152/paper15
|storemode=property
|title=The New eCustoms Information and Communication Technology Platform Applied as a Business to Government (B2G) Interface
|pdfUrl=https://ceur-ws.org/Vol-1152/paper15.pdf
|volume=Vol-1152
|dblpUrl=https://dblp.org/rec/conf/haicta/Namdarian11
}}
==The New eCustoms Information and Communication Technology Platform Applied as a Business to Government (B2G) Interface==
https://ceur-ws.org/Vol-1152/paper15.pdf
The New eCustoms Information and Communication
Technology Platform Applied as a Business to
Government (B2G) Interface
Iraj Namdarian1
1
Library, Dissemination and Telematics Unit, Italian Institute of Agricultural Economics,
Italy, email: namdarian@inea.it
Abstract
Trans-European IT services are provided by DG TAXUD in two main ways: either in a
distributed way to allow the exchange of information between national administrations, or in a
"hub" and "spoke" way concerning the exchange of information.
In parallel, the emergence of the Web and the irresistible push towards eGovernment offers an
increasing number of services to the citizen. These services provide the traders with a view of
the critical business information which is exchanged between the Commission and the national
administrations1. DG TAXUD also provides IT services to serve its own internal business
needs in the area of customs. It is crucially important to understand that, in order to serve its
user base, DG TAXUD manages IT services which rely on a set of “trans-European systems”
made up of geographically spread, but tightly interoperating and collaborating as a Business-
to-Government service.
Key words: eGovernment, Interoperability, eCustoms, B2G, Service Oriented Architecture,
Web Services
1. Introduction
For more than 15 years, the EU customs policy has required the implementation of
IT trans-European services. Since 2003, when the Commission issued a
Communication on a simple and paperless environment for customs and trade 2 that
was subsequently endorsed by the Council,3 the efforts towards creating increasingly
efficient, effective and interoperable information and communication systems have
been bundled under the electronic customs initiative. On 15 January 2008, the
European Parliament and the Council adopted the so-called E-Customs Decision
(70/2008/EC), which foresees that the Commission and the Member States set up
secure, integrated, interoperable and accessible electronic customs systems for the
exchange of data contained in customs declarations, documents accompanying
customs declarations and certificates and the exchange of other relevant information.
1 http://ec.europa.eu/taxation_customs/common/databases/index_en.htm
2 COM (2003) 452, 24.07.2003
3 OJ No C 305, p. 1.
183
These electronic customs systems aim to make customs clearance more efficient,
to reduce administrative burdens, to combat fraud, organized crime and terrorism, to
serve fiscal interests, to protect intellectual property and cultural heritage, to increase
the safety of goods and the security of international trade, to enhance health and
environmental protection, to allow for a seamless flow of data between export and
import countries and to improve clearance times.
The creation of a single, shared computer portal will ensure that Member States'
electronic Customs systems are compatible with each other - although all Member
States have electronic Customs systems, they are not currently inter-connected.
Therefore, the e-Customs Initiative is a significant development for the EU's
Customs Union.
Essentially, there are three components of legislation that constitute the Electronic
Customs Initiative: Security Amendment to the Customs Code4; Electronic Customs
Decision (e-Customs Decision)5; and Modernised Customs Code (MCC)6. They
promote the use of modern tools and technology, with the MCC and e-Customs
Decision in particular generating a reengineering of procedures through radical
simplification and modernisation. This will promote uniform application of the law
and reduce costs for business and the risk of error.
2. eCustoms
An example of how governments may help e-commerce transactions by
developing new concepts, which also ease governmental tasks, is given by the
introduction of electronic customs. In the European Union, national electronic
customs declaration systems are already used in many countries, e.g., Atlas in
Germany, CHIEF in UK, Aida in Italy or Sagitta Entry in the Netherlands. However,
a common standardized electronic customs system is still missing but it is topic of
research promoted by the EU. The goal of a common customs system is to overcome
interface barriers between national systems.
The EU has already started the implementation of standardized systems (European
Commission, 2007a); together with the already existing Community Customs Code,
this implementation will facilitate European trade. The implementation is composed
of four key stages:
1. The first stage builds on existing work; namely the New Computerized Transit
System (NCTS) and risk management tools. It creates the foundation for an
electronic customs declaration environment by adding systems for Import (ICS) and
Export (ECS), applying the International Road Transport Convention for Transit
(NCTS-TIR), and including the Economic Operators Registration and Identification
System;
2. The second stage is seen as providing aspects of the electronic customs vision
which primarily addresses trader concerns: the Economic Operators Registration and
4 Regulation (EC) 648/2005
5 Dec No 70/2008/EC
6 Regulation 450/2008
184
Identification System and the Authorized Economic Operator, together with the
Common Customs Information Portal and the Single Electronic Access Point;
3. The third stage is based on the Modernized Customs Code concept, (European
Commission, 2007b) and is focused on more ambitious aspects of the electronic
environment. These projects would lead to the completion of a fully Automated
Export and Import System (AES and AIS), as well as the completion of the Common
Customs Tariff and Integrated Tariff of the European Communities (Taric), which
came into force in 1987 (European Commission, 1987);
4. The fourth stage is related to the Single Window project as described in the
Council’s proposal for a paperless environment for customs and trade.
The goal of the EU customs project is to enable a paperless environment for
customs and trade, i.e., to develop a common standardized ecustoms system. The
envisioned e-customs system will be based on Single Window (SW) and Authorized
Economic Operator (AEO).
3. Customs Trans-European Systems
The table and diagram below provide a summary of the customs trans-European
Systems developed and operated by DG TAXUD, and their operational status.
Figure 1.1 - Custom Trans – European Systems
CUSTOMS TRANS-EUROPEAN
SYSTEMS AND APPLICATIONS
CUSTOMS TRANS- CUSTOMS CENTRAL
EUROPEAN SYSTEMS
YSTEMS APPLICATIONS
NEW
COMPUTERISED
TERISED
TRANSIT
OTHERS
SYSTEM (NCTS)
AUTOMATED
ATED
IMPORT
SYSTEM (AIS)
SINGLE
eCUSTOMS SINGLE
ELECTRONIC
INFORMATION WINDOW (SW)
NCTS – PHASE 3.2 ACCESS POINT
PORTAL (ECIP)
(SEAP)
IMPORTT CONTROL
CON AIS – PHASE 2 FULL
LL
NCTS - PHASE 4 M (IC
SYSTEM (ICS) – DEPLOYMENT
PHASE 1 OF AIS
NCTS - TIR
AUTOMATED
EXPORT SYSTEM
(AES) AUTOMATED INFORMATION
INFORM
EXCHANGE WITH THIRD
COUNTRIES
AUTOMATED
EXPORT CONTROL EXPORT CONTROL
EXPORT SYSTEM
SYSTEM (ECS) – SYSTEM (ECS) –
(ECS) – FULL NCTS TIR RUSSIA (EU-
PHASE 1 OF AES PHASE 2 OF AES
DEVELOPMENT RUSSIA PILOT
PROJECT)
185
Customs Operational Systems (Trans – European Systems)
The initiatives that fall under Customs Operational Systems can best be described as
traditional Customs procedures (import, export and transit). As part of the modernization of
Customs these procedures will be conducted, across the Member States, on electronic
platforms which aim to ease complexity in Customs procedures and avoid duplication. The
necessary data will be processed through the Automated Import System, the Automated Export
System and the New Computerized Transit System.
1 Automated Will ultimately allow for the full computerization of import
Import System procedures and thereby support the exchange of information between
(AIS) Customs offices and traders, ensuring that import operations involving
Customs authorities of more than one Member State can be completed
without the resubmission of the same information. AIS will include the
exchange of electronic messages (entry summary declarations, risk
information, etc.) related to the different stages of goods moving
through and out of the Community.
Implementation will occur in two phases - Import Control System
(ICS) and full deployment - culminating in a fully interoperable
electronic organism (Member State to Member State, Member State to
Commission and vice versa).
· Phase 1: ICS. Provides the platform for safety and security
controls at import
· Phase 2: Full deployment of AIS
1.1. Automated ICS is for the safety and security of cargo entering the EU,
Import System providing for the handling of entry summary declarations received from
Phase 1: Import carriers or their agreed representative, e.g. freight forwarder or agent.
Control System The data collected will be used for risk analysis and appropriate
messages relating to the goods (e.g. "do not load") will be issued.
Traders will be required to provide information (entry summary
declaration) in advance of goods being imported into, or transiting
through, the EU.
Business · It will be the carrier's responsibility to ensure entry summary
Overview declarations are presented to Customs (as the person who brings
the goods, or who assumes responsibility for the carriage of the
goods into the Customs territory of the Community)
· There will be the possibility to lodge entry summary declarations
at a Customs office other than the Customs office of first entry, in
the medium to longer term
· The data requirements and time limits for submission vary
slightly between modes:
o Maritime containerised cargo: 24 hours prior to loading at the
port of departure
o Maritime bulk and break bulk cargo: at least four hours prior
to arrival
o Maritime sea voyages of fewer than 24 hours: at least two
hours prior to arrival
o Short haul flights (i.e. flights of fewer than four hours'
duration): at the time of actual take-off
o Long haul flights: at least four hours prior to arrival
o Rail and inland waterway traffic: at least two hours prior to
186
arrival
o Road traffic: at least one hour prior to arrival
1.2. AIS – The objective is to allow the full computerisation, based on the
Phase 2 Full national IT systems, of the import procedure in cases where the
Deployment customs authorities of more than one MS are involved, enabling
(Centralised electronic exchange of information between customs offices and
Clearance and traders.
Simplifications) It will keep and expand the functions of ICS, and in particular it will
add the notification of arrival and the presentation of goods, and the
centralised clearance approach.
Business · Easier connection with Customs authorities
overview · The avoidance of the transit procedure
2. New NCTS will, with the support of electronic declarations and
Computerized processing, streamline and harmonize the core transit process whilst
Transit System - incorporating the data required for security purposes.
NCTS NCTS facilitates the management and control of Community transit
thereby enabling non-Community goods (those that are not in free
circulation) to move between two points within the Community without
being subject to import duties and other charges.
· Phase 1: NCTS. Covering Community/common transit
· Phase 2: NCTS-TIR. Control of the Community leg of TIR
movements
· Phase 3: NCTS-Safety and Security. Incorporation of security
data elements
· Phase 4: NCTS-Enquiry/Recovery. Upgraded enquiry procedure
and introducing the recovery procedure
The objective of NCTS is to enable full control of the "core" transit
procedure including the guarantee management and enquiry
procedures, with the support of IT facilities.
2.1. NCTS – This enhancement to NCTS will incorporate into the system the
Safety and additional features arising from the Security Amendment to the
Security Aspects Customs Code and its implementing provisions. Customs will thereby
(including the be able to obtain information for risk analysis on transit shipments. In
ATIS addition, a development in the Anti-Fraud Transit Information System
amendments) (ATIS) will enable the system to forward a copy of transit movements
to DG OLAF (the European Anti-Fraud Office) for movements
including sensitive goods.
Business · for the administrations: faster and more effective
Overview control/discharge of transactions involving goods in transit in the
customs territory of the Community; more efficient handling at
the offices of transit; With the "security amendment": possibility
of reusing the already existing transit declaration for another
purpose.
· for the economic operators: time and cost savings arising from
more effective functioning of the transit procedure; with the
"security amendment": possibility of using a single declaration for
2 purposes.
3 Automated The objective of the AES is to ensure that operations started in one
Export System MS can be finalised in another MS. This includes the exchange of
(AES) electronic messages related to the different stages of the operations
amongst the various actors (customs, traders and other governmental
187
administrations).
development of this project has been divided into 3 phases:
a. ECS Phase 1 – exit "fiscal" control: operation started in January
2007 in several MS, with full application agreed from 1 July 2007;
b. ECS Phase 2 – exit "security" control linked to the
implementation of Regulation (EC) No 648/2005;
c. AES – full deployment.
3.1. Export ECS Phase 1, as the initial step of the AES, is to provide for the full
Control System control of the conclusion of export operations through the electronic
(ECS) Phase 1 exchange of export/exit information between customs offices of export
and customs offices of exit, in particular where different MS are
involved.
ECS is built according to the NCTS logic, but re-adapted for the
export procedure.
It starts when a Trader submits an export declaration to the proper
Customs Office of Export. Then, after the acceptance of the export
declaration, he/she receives the Export Accompanying Document
(EAD) with a unique Movement Reference Number (MRN) which
identifies the movement. Then the means of transport carrying the
consignment covered by this document goes to the Office of Exit.
Normally, the consignment arrives at the Office of Exit. The goods
are presented to the Actual Office of Exit which processes the exit of
the goods. Once the exit process is completed, the Office of Export
finalizes the export operation.
The core element of the ECS is the information exchange between
the office of export and the office of exit:
· to inform the office of exit of the anticipated arrival of goods for
which export formalities have been completed at the office of
export;
· to handle diversions;
· to inform the office of export of confirmation of exit and/or
control results including the date of exit from the customs
territory of the European Union; and
· to handle partial and consolidated shipments.
Business · Early confirmation of export operations
Overview · Faster accounting of VAT deductions, export refunds, etc.
· The ability to chase up problem movements at the earliest
opportunity
3.2. Export ECS Phase 2 provides for the electronic handling of combined
Control System export declarations/exit summary declarations under the Security
(ECS) Phase 2 Amendment. It will require additional information to be included in
export declarations for safety and security purposes, amongst other
things. This provides Customs administrations with the infrastructure
for fast reception and treatment (particularly risk analysis) of the pre-
departure declarations. This Phase preserves and builds upon the
functionalities delivered in ECS Phase 1 giving better control of
movements and a more rational use of resources.
Business · for the administrations: fast reception and treatment (notably, risk
Overview analysis) of the pre-departure declarations; better control of
movements, and a more rational use of resources for control;
· for the economic operators: flexibility in their connection with the
188
customs authorities.
3.3. Automated Full deployment of AES will allow for the full computerisation of
Export System export procedures and ensure full integration of all export-related
(ECS) - Full requirements (e.g. T5, sanitary controls). It builds upon and includes
development the functionalities of ECS Phases 1, 2 and the addition of the
(Centralised centralised clearance approach is planned. Customs administrations
Clearance and across the EU will have a completely automated procedure for the
Simplifications) reception and treatment of all information linked to export declarations.
Business The AES is a further evolution of the ECS (phase 1 of the AES) and
Overview the first implementation of the eCustoms initiative. At the same time,
ECS is the second customs procedure, after the New Computerised
Transit System (NCTS), for which a Europe-wide IT-solution is
applicable. AES will allow for the full computerisation, based on the
national IT systems, of the export procedure, ensuring full integration
of all export-related requirements (e.g. T5, sanitary controls).
AES will build upon and include the functionalities of ECS Phases 1
and 2. In particular, it will add the central clearance approach.
The advantages brought by this system are:
· for the administrations: a completely automated procedure for the
reception and treatment of all information linked to export
declarations, including subsequent input to other national
administrations and agencies where necessary;
· for the economic operators: an easier connection with all the
customs authorities via the “centralised” clearance at export,
avoiding, inter alia, the cumbersome procedures currently in force
in “triangular” traffic.
4. Others
4.1. EU To enable economic operators to access information related to
Customs import/export requirements, as well as information on the operational
Information status of movements through a customs information portal. Such a
Portal (ECIP) portal would mainly contain all relevant information about rules on the
movement of goods across borders, and also relevant information from
domains other than pure customs (e.g. agricultural, environmental and
other legislation). This approach is in line with the e-Government
roadmap.
Links will be provided to more detailed and/or national information
featuring on the customs information portals of the national customs
administrations. Also national administrations will be provided with an
opportunity to feed info to the EU customs information portal.
Business · for Commission and national administrations: reduced enquiries,
Overview leading to costsa vings; it will ensure a further evolution of the
Data Dissemination System and its integration into the ECIP.
· for economic operators: facilitated access to any information
pertaining to customs transactions; it will also simplify the task of
traders and allow them to save on training and expertise costs.
Can be used as a basic tool to prepare electronic declarations.
4.2 Single The development of SEAPs will mean that the lodging of electronic
Electronic Access entry/exit summary declarations, summary and Customs declarations
Points (SEAPs) will be able to be done through a single interface of the trader’s choice
– irrespective of which Member State’s Customs authority is concerned
with an individual movement. The data inputed through SEAP will be
189
available to any Customs office responsible for the location where the
goods have been, or are to be, presented. The role of access point
providers (Member State’s Customs services or authorised private
companies) will initially be limited to the passing on of the required
data for processing by the competent Customs administration.
Business · Only need one access point to lodge Customs declarations
Overview · Existing electronic connections could be maintained
4.3. Single The eCustoms “Single Window” is the most challenging integration
Window (SW) project of eCustoms as it will require eventually achieving both
business processes and technical interoperability amongst some 150+
governmental agencies across the Community and possibly other
parties in third countries. Its deployment will be a major co-ordination
challenge, before being a technical one.
The objective of SW is to enable economic operators to lodge
electronically, and once only, all the information required by customs
and non-customs legislation for EU cross-border movements of goods.
The initiative is currently presided over by DG TAXUD.
There will be (at least) one SW per Member State. These SW will be
supported by the SEAP functions for lodging of declarations (if
available). The handling of certificates and licences needed for the
declaration will be based on the Community tariff and supplementary
information specific to the MS concerned. Certificates and licences
from other MS will be transferred via the connection between the MS,
the Commission and 3rd countries (SPEED platform), as well as
between Commission systems, where required.
SW shall also make information available on how to request
certificates and licences from competent bodies.
Business · for the administrations: efficient risk management, increased
Overview streamlining, simplification and security of the customs
operations, easier cooperation with other government authorities,
even those in different member states;
· for the economic operators: streamlining the lodging of
supporting documents resulting in time and money savings;
ability to request licences and certificates from competent bodies.
4. Conclusions
The proper functioning of the customs union, and the achievement of its different
objectives, depends in the first instance on the applicable customs legislation. The
strategic decisions (e.g. on the Modernized Customs Code, the Safety and Security
Amendment, or the E-Customs Decision) are taken in the relevant political decision-
making fora, and are thus largely an external variable as far as the Customs 2013
programme is concerned. However, the C2013 plays a very significant role in
ensuring that customs legislation is implemented, interpreted and applied uniformly
across the entire EU, and in a way that is effective and strikes an appropriate balance
between combating fraud and tackling safety and security-related risks on the one
hand, and minimizing the burden for legitimate trade on the other.
190
It can be suggested that the contribution of C2013 is greatest towards the
harmonization of the working methods of national customs administrations, since this
results, to a greater or lesser extent, from nearly all joint actions and IT systems that
standardize approaches, bring together national customs officials and facilitate the
exchange of information and best practices. At the other end of the spectrum, there
are indications that the ongoing focus on the implementation of the Safety and
Security Amendment means that trade facilitation often continues to play a somewhat
secondary role in many programme activities; therefore, while progress has been
made in this field, it has tended to be slower than in the others.
C2013 has been able to make a significant contribution to the proper functioning
of the customs union (and to the objectives that form the basis for this) through a
wide array of interventions, including both joint actions and IT systems. The broad
and flexible nature of the toolkit available to the programme is one of its greatest
strengths.
5. References
1. Communication from the European Commission to the Council, the European
Parliament and the Economic and Social Committee concerning a strategy for the
Customs Union (COM(2001) 51 final): http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2001:0051:FIN:EN:PDF.
2. Communication from the European Commission to the Council, the European
Parliament and the Economic and Social Committee concerning a Strategy for the
evolution of the Customs Union (COM(2008) 169 final): http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0169:FIN:EN:PDF.
3. CUST-DEV2 TAXUD/2009/AO-01- ToR – Invitation to tender
TAXUD/2009/AO-01 ‘Specification, development, maintenance and support of
customs IT systems and applications (CUST-DEV2). Pages 37-38.
4. Decision No 624/2007/EC of the European Parliament and of the Council of 23
May 2007 establishing an action programme for customs in the Community
(Customs 2013).
5. Decision No 70/2008/EC of the European Parliament and the Council of 15
January 2008 on a paperless environment for customs and trade.
6. Electronic Customs Multi-Annual Strategic Plan, TAXUD/477/2004 - Rev. 9
Working Document, 2008.
7. European Commission. (2007a). Electronic Customs Multi-Annual Strategic
Plan, 2007 Yearly Revision (MASP 8). Retrieved December 8, 2007, from
http://ec.europa.eu/taxation_customs/resources/documents/customs/policy_issues
/ecustoms_initiative/MASP_rev7.pdf.
8. European Commission. (2007b). Proposal for a Regulation of the European
Parliament and of the Council laying down the Community Customs Code
(Modernized Customs Code). Retrieved February 10, 2009, from
191
http://ec.europa.eu/taxation_customs/resources/documents/customs/procedural_as
pects/general/community_code/mccc_en.pdf.
9. European Commission, “Electronic Customs Multi-Annual Strategic Plan: 2007
Yearly Revision,” TAXUD/477/2004 – Rev. 8 EN, Number 3, “Vision and
Objectives of Electronic Customs,” (Brussels: European Commission, 2007).
10. European Commission. (2006). Annex to the Proposal on the Community
Programme Customs2013 – Impact Assessment. Retrieved December 8, 2007,
from
http://ec.europa.eu/taxation_customs/resources/documents/Customs2013_impact.
pdf.
11. Kuiper, E. J. (2007). Convergence by Cooperation in IT – The EU’s Customs and
Fiscalis Programmes [Electronic Version], Master Thesis, Delft University of
Technology. Retrieved December 8, 2007, from
http://www.itaide.org/forms/document.asp?Q=7771
12. Raus M., Diffusion of Business-to-Government IT Innovations: The Case of e-
Customs, Dissertation, University of St. Gallen, Graduate School of Business
Administration, Economics, Law and Social Sciences (HSG)
http://www1.unisg.ch/www/edis.nsf/wwwDisplayIdentifier/3788/$FILE/dis3788.
pdf.
13. Regulation (EC) No 450/2008 of the European Parliament and of the Council of
23 April 2008 laying down the Community Customs Code (Modernised Customs
Code).
14. Vogel T., Schmidt A., Lemm A. and Österle H. (2008) Service and Document
Based Interoperability for European eCustoms Solutions, ed. Journal of
Theoretical and Applied Electronic Commerce Research, p. 17-37.
192