WSC backs EC’s customs security plans, asks for amendments

WSC backs EC’s customs security plans, asks for amendments    Washington, D.C.-based World Shipping Council has broadly welcomed the European Commission’s “security” amendments to its existing Community Customs Code, but has suggested an amendment after concerns over the legal wording of the document.
   The EC’s amendments to Regulation 2454/93 include a proposal to collect and prescreen advance shipping data and an Authorized Economic Operator (AEO) program, by which operators would receive “secure” traders status, benefiting from simplified customs procedures, by achieving security and safety standards compliance.
   The WSC, which represents about 30 international ocean carriers, said in comments sent to the EC: “The drafting of this provision raises a number of concerns. First, it would seem to allow a Customs official to suspend an AEO for an activity that might be punishable under a penal code, but for which no finding of criminal guilt has occurred.
   “Second, the draft is not clear regarding the jurisdiction in which the possibly criminal activity needs to have occurred. In other words — would it have to be a criminal offense within the community, would the offense have to relate to conduct relevant to the terms of the AEO program, or would any criminal offense anywhere in the world suffice?
   “Third, as drafted, the provision does not appear to provide for legal recourse or appeal,” the WSC said.
   “We suggest that these concerns could be addressed by amending the draft commission regulation to provide for suspension when there has been perpetration of a criminal offense within the community that is relevant to the subject matter of the AEO program, and for which the AEO has been convicted, except for cases of immediate danger.”
   The WSC had fewer issues with the “24-hour rule” amendment, although it did ask for a long implementation period.
   “The council supports a '24-hour rule' strategy for containerized ocean commerce ' We believe the interest of European commerce can be served by such a regime,” the WSC said.
   “At the outset, the council believes strongly that it is not realistic to introduce a community-wide advance cargo risk assessment system until such time as all of the Customs administrations of administering port member states have become automated and have electronic data filing and sharing capabilities. It will also be necessary for member states to seek to have comparable and consistent risk screening and assessment capabilities.
   “Our member carriers have found from experience that the kinds of changes envisioned in this draft regulation can require significant administrative, operational, and education efforts to be implemented successfully. In order to comply with a European 24-hour rule regime, it is likely that the carriers’ administrative office functions would have to be transferred from European offices to offices at the foreign load port.
   “That can require information system changes, business process changes, personnel changes and training, and marketing/education efforts. In short, these regulations will have a significant impact on carriers and their customers and how they conduct their business, and will require adequate time after the regulations are finalized for the industry to make the operational changes necessary to comply.
   “Consequently, we would respectfully encourage that the final regulation provides for a sufficiently long implementation period after the regulation takes effect and before enforcement is commenced,” the WSC said.
   “We appreciate the opportunity to provide these comments and observations, and we look forward to working closely with the commission and the other parties in the supply chain to ensure that these regulations can be implemented in a way that not only enhances European security, but does not adversely affect the efficiency or reliability of the transport services carrying the Community’s international commerce,” the WSC said.
   The full amendments can be viewed at: https://europa.eu.int/comm/taxation_customs/resources/documents/common/consultations/customs/
customs_security_consultation_en.pdf