graham bartlett policy director sitpro ltd uk experience of implementing wco safe framework of...
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Graham BartlettPolicy Director SITPRO Ltd
UK Experience of Implementing WCO SAFE Framework of Standards
SITPROSimplifying International Trade
SITPRO LTD
• The UK’s Trade Facilitation Agency• The World’s Leading Trade Facilitation body• Predominantly funded by UK Government• Supported by business
SITPROSimplifying International Trade
What Do International Traders Want?
Traders want to trade in overseas markets:
• Quickly - Safely - Easily - Securely
• follow commercial practice and meet official obligations without increasing costs or burdens
• MAKE A PROFIT
International Trade Is Complex
Freight Freight ForwarderForwarder
ImportImportererLicensing AuthoritiesLicensing Authorities
ExporterExporter
InspectionInspectionAgenciesAgencies
CustomsCustoms
ConsulateConsulate
AdvisingAdvising BankBankHealthHealth
AuthorityAuthority
Issuing BankIssuing BankCarriCarrierer
Frontier PostFrontier Post
AgentAgent
Port OperatorPort Operator
SITPROSimplifying International Trade
SITPRO LtdCuts Red Tape in International Trade
SITPROSimplifying International Trade
What I will Cover
• The Security Environment
• WCO Safe Framework of Standards
• EU Authorised Economic Operator Scheme
SITPROSimplifying International Trade
Role of Customs
• Meanwhile, role of Customs changing :
• Revenue
• Trade defence
• Trade management (including revenue)
• Border security
SITPROSimplifying International Trade
Security Drivers and Impacts
• 9/11!
• Increased regulation
• Uncertainty for traders
• Increased compliance costs
Security = the biggest threat to facilitation
SITPROSimplifying International Trade
SITPROSimplifying International Trade
Security Initiatives
International• ISO 28000• ISPS• TAPA• SAFE
National• C-TPAT• CSI• SFI• IAN Act• Cyclamen• Known Shipper
SITPROSimplifying International Trade
Security “spaghetti”
http://www.sitpro.org.uk/policy/security/initiatives0108.pdf
SITPROSimplifying International Trade
WCO SAFE
• Common standard
• Strengthened co-ordination and co-operation
• SAFE = Secure AND Facilitate
SITPROSimplifying International Trade
Mutual recognition of AEO
AEO C-TPAT
27 Member States
? ?
?
+ others
SITPROSimplifying International Trade
Obstacles / Risks
• Different bases, different starting points• Readiness to compromise (on requirements, NOT
border security)• Not invented here• Lack of trust in authorisation process = lack of trust in
companies authorised• No benefits to business
= no mutual recognition
SITPROSimplifying International Trade
UK Experience of AEO
The EU legal framework – Council Regulation (EEC) 2913/92 establishing
the Community Customs Code – Regulation (EC) 648/2005 of the European
Parliament and of the Council – the Security Amendment to the Customs Code
– Commission Regulation (EC) 1875/2006 – the Implementing Regulation
SITPROSimplifying International Trade
3 Types of EU AEO
1. Customs Simplifications
2. Security
3. Customs Simplifications and Security
SITPROSimplifying International Trade
The EU AEO Concept
• AEO (from 1 January 2008)• Risk Management Framework• Pre-Arrival and Pre-Departure data (from mid
2009)• Security intervention at port of first call in the
Community • Administered in each of the 27 Member States
SITPROSimplifying International Trade
EU Common AEO Criteria
• No criminal convictions or liability to conviction• Financially solvent and not subject to bankruptcy
proceedings• Record of compliance with customs requirements• Satisfactory system of records management and IT
security
SITPROSimplifying International Trade
EU Security AEO Criteria
• Additional Criteria:
– Physical security measures
– Measures allowing clear identification of trading partners in order to secure the supply chain
– Security screening of employees and security awareness programmes for staff
– Procedures for handling import/export licenses connected to prohibitions and restrictions
SITPROSimplifying International Trade
EU AEO
• 2000 applications in the EU • Scheme not promoted in UK• Impact of Customs Consultants• Slow process - currently 120 days• Lack of direct benefits
– Yes– No– Maybe
SITPROSimplifying International Trade
Indirect Benefits
• Pioneers
• Badge a saleable commodity
• Customs health check
• What if………..
SITPROSimplifying International Trade
Thank You
Graham Bartlett
Policy Director
00 44 20 7215 8068