European Commission Taxation and Customs Union Data harmonisation

European Commission Taxation and Customs Union Data harmonisation in the Single Administrative Document (SAD) The EU E-customs project Prospects for South Caucasus countries Jean-Luc Delcourt TAXUD-C-1 23 -24 June 2009 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

European Commission / Taxation and Customs Union Presentation structure ü Single Administrative Document ü ü ü origin, context, harmonization dimension, SAD reform . . . ü International standards ü Prospects for South Caucasus 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 2

European Commission / Taxation and Customs Union SAD Origin The 1980 s: Multiplicity of documents (then more than 200) to cover • Different Customs procedures • In different countries • For different modes of transport Ø Need for simplification and rationalization of Customs declarations processes. 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 3

European Commission / Taxation and Customs Union SAD Context and objectives The SAD • Rationalizes and reduces administrative documentation • Ensures openness in national administrative requirements • Reduces amount of data • Standardizes and harmonizes data 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 4

European Commission / Taxation and Customs Union SAD Standardizes and harmonizes data (1) Ø Use of common codes for as many data elements as possible ü ü ü 23 -24 June 2009 Trader identification numbers (boxes 2, 8. . . ) Delivery terms (box 20) Nature of transaction (box 24) Preference codes (box 36) Procedure codes (box 37 – partially) Valuation method code (box 43) Special mentions (box 44 – partially coded) Tax types (box 47) Mode of payment (box 47) Warehouse identification (box 49) Guarantee (box 53) *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 5

European Commission / Taxation and Customs Union SAD Standardizes and harmonizes data (2) Ø As far as possible international standards ü Country codes (iso alpha 2 codes – ISO 3166 -derived) (Boxes 15, 17, 21, 34. . . ) ü Currency codes (box 22 – ISO 4217)) ü Modes of transport (boxes 25 and 26 – UN-ECE rec. 28) ü Customs offices (box 29, 51 – UN LOCODE - partially) ü Package codes (box 31 UN-ECE rec. 21) ü Commodity code (box 33 – HS code) ü Documents identification (boxes 1, 40, 44, partially 1001 Edifact codes) ü. . . 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 6

European Commission / Taxation and Customs Union SAD Geographical scope Legal instruments Used in the EU and EFTA since 1. 1. 1988 • Community level: Customs Code Implementing Provisions (Reg. 2454/93) and its 2913/92, • International level: Conventions on Simplification of Formalities and on Transit 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 7

European Commission / Taxation and Customs Union SAD Evolution so far Ÿ Designed originally as a first step towards abolition of formalities in the EU, it has now virtually disappeared for intra EU trade since the 1993 internal market Ÿ 30 countries use it within a common legal framework (18 in 1988) Ÿ Many countries use forms copied or inspired by the SAD (i. e. through ASYCUDA) 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 8

European Commission / Taxation and Customs Union SAD Brief summary Ÿ The SAD replaced about 200 different forms in the 18 original user countries Ÿ Through data reduction and standardisation, the SAD reduces traders and Customs workload Ÿ The SAD as a form is more and more often replaced by EDI systems Ÿ The harmonisation effort achieved to set up the SAD facilitated the introduction of the current EDI systems 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 9

European Commission / Taxation and Customs Union SAD Developments after 1988 • G 7 >> WCO data model • Widespread computerisation of customs declarations systems • Development of EU Electronic Customs Project Ø Need to harmonize further data and codes in the perspective of more computerisation and more integration of Customs declaration systems Ø SAD Reform 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 10

European Commission / Taxation and Customs Union SAD Reform • Implementation on 1. 1. 2007 (Some Member States applied it earlier) • Reduction of data requirements by 26 % • Reduction of optional requirements by 43 % • Non-coded data at Community level greatly reduced 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 11

European Commission / Taxation and Customs Union SAD Reform (2003 -2007) DATA CODING – Average ALL PROCEDURES 70% reduction of non-coded data 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 12

European Commission / Taxation and Customs Union SAD Reform DATA SET (AVERAGE ALL PROCEDURES) Overall reduction of data requirements by 26% Overall reduction of Optional elements by 43% > Publication of national data and coding where no harmonisation possible. 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 13

European Commission / Taxation and Customs Union SAD Reform Implementation q IMPLEMENTATION – TEXTS • Publication of reg. 2286/03 on 31 December 2003 • Implementation date on 1. 1. 2007 • Some Member States applied it earlier 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 14

European Commission / Taxation and Customs Union International standards q Wherever possible, all these developments are conducted in coherence with international instruments such as: • WCO framework of standards – WCO data model • UN-ECE standards and recommendations q Where this is not possible, the EU links with the relevant organisations to maintain those instruments. 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 15

European Commission / Taxation and Customs Union Data harmonization from the perspective of the SAD and its use in South Caucasus countries • By nature, the SAD encourages and presupposes • Data requirements as harmonized as possible in their definitions and representations • The use of international standards for data and codes Ø This enables traders to provide export and import data to customs at a lower cost: Data can be « recycled » : • from export to import formalities / declarations, • from commercial to Customs documentation. Ø This ensures better quality of data for Customs administrations. • The connection and integration of national procedures in a coherent, global standards-compliant, modernized framework is paramount for the development of the economy and the modernization of public systems. 23 -24 June 2009 *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 16

European Commission / Taxation and Customs Union THANK YOU VERY MUCH FOR YOUR ATTENTION ANY QUESTIONS ? • Jean-Luc DELCOURT Ø Ø European Commission - TAXUD C/1 Telephone: + 32 2 296 23 24 Fax: + 32 2 296 59 83 e-mail: Jean-Luc. Delcourt@ec. europa. eu • Web: 23 -24 June 2009 SAD page of TAXUD website *Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 17