Session 1.

Facilitation of customs
declaration compliance
Ana Arvalo, Barcelona Port Authority
B2MOS MID-TERM CONFERENCE
Valencia, 31 October 2014

Initiatives in this session

SESSION 1. FACILITATION OF CUSTOMS DECLARATION COMPLIANCE

Initiative 1. Trade facilitation with ultra-peripheral regions

Initiative 3. Improvement of customs and Port control efficiency in trade

flows with EU Neighboring countries
Initiative 11. Facilitation of Customs inspections procedures in the port area

Main problems addressed

Trade flows between EU member states and ultra-peripheral regions need to solve the
administrative burden linked to customs procedures.

Trade flows between EU and neighboring countries need to improve the customs and
inspection procedures in all the import-export process.

Customs physical procedures in the ports areas need to be improve in time savings
and ensuring the full traceability of the inspection process.

Main benefits
MAIN BENEFITS:
Almost 2 million export Customs declarations to the Canary Islands will not need to be
presented anymore. Additionally, these initiative prototypes will demonstrate that double
manual entry of data in origin and destination systems will be avoided and sanction risk will
decrease with the use of these prototypes.

Improve customs and phyto-sanitary inspection procedures in the trade flows between EU and
neighboring countries will represent time savings for customs agents and drivers and cost
savings for clients. Thus will positively impact in the reliability and quality of the Short Sea
Shipping services.

Using mobile technologies in customs physical inspections will allow ensuring the full
traceability of the inspection process and reducing process time (time to execute a process
activity) and lead time (time elapsed between the initiation and execution of a process).

Initiative 1. Trade facilitation

with ultra-peripheral regions
Miguel Llop Valenciaport Foundation
B2MOS MID-TERM CONFERENCE
Valencia, 30-31 October 2014

Current situation
Decreasing the administrative burden linked to Customs procedures for trade flows
between Italy, Spain and other member states and ultra-peripheral regions such as
the Canary Islands, Ceuta and Melilla is a highly demanded measure by most business
stakeholders involved in this traffic.
Forwarding
SAD & T2LF

Canary Islands are not covered by the VAT directive although they are in the same EU customs
territory, so customs authorities together with the Canaries Tax Agency need to make the
mandatory controls in the forwarding and introduction of goods.

Departure
manifest

Introduction
SAD & T2LF

ENS

Arrival
Manifest /
SDTS

Territory where
Community rules for
VAT apply

Territory where
Community rules for
VAT do not apply
6

Current situation
Trade facilitation measures between the Spanish Peninsula and the
Canary Islands
The Spanish Tax Agency aware of the additional difficulties in this ultra-periphery
region signed an agreement in 2005 with the Canaries Tax Agency to constitute a
Customs Single Window (VEXCAN) for both agencies.

On February 2014, they announced the introduction of measures to simplify the

formalities linked to e-commerce and freight exchanges. The particular measures
presented in Fall 2014 to simplify procedures being introduced are:

The exemption of lodging the SAD for forwarding freight exchanges of less
than 3,000 value and in those shipments exchanged where there is not any
transfer in the ownership of goods: The use of a commercial invoice with the
mention T2LF will be used instead of the forwarding SAD and when the

introduction SAD is presented a destination a TVA exemption certificate will

be available in the customs website.

The exemption of lodging the SAD for forwarding goods from Canary Islands
not only for shipments to Spain but to the rest of Europe, jointly with the
possibility to present a T2LF document through the e-T2L system.

The possibility that a simplified SAD for introduction of goods is used by

citizens and SMEs; and

The possibility that a seller or its customs broker presents the SAD for
introduction of goods, paying all the taxes, minimizing the additional costs of
the buyer when acquiring the goods.
7

Objective of the initiative

OBJECTIVES:

Design new processes to automate the documentary customs obligations with ultra-peripheral
regions by sharing information among different business stakeholders, PCS and customs systems
to decrease the quantity of formalities and declarations, the data to fill in, the time to compile
the data, the errors introduced in the documents submitted and avoid to submit the same
information twice.

MAIN BENEFITS:

Avoid manual entry of data in the systems

Take away the risk of sanctions

Improve the invoicing process to the customers as the port fees are
calculated correctly

Improves business management

Provides a new dimension of knowledge

Application of the exemptions and simplifications introduced by Customs

and Tax Agencies
8

Prototypes included in the initiative

PROTOTYPE 1. Customs@Stream

by Contenosa

Prototype and pilot new shipping carrier information systems to improve management
documentation processes required by the customs authorities for shipments between
the Spanish peninsula and the Canary Islands.
PROTOTYPE 2. Paperless

clearance controls at departure for containers

included in facilitation trade measures to Canary Islands
To create the proper environment and knowledge to pilot the introduction of the
simplification of the exemption of presenting and forwarding SAD for the freight
movements from the Spanish peninsula and the Canary Islands.
PROTOTYPE 3. Trade

facilitation with ultra-peripheral regions

The initiative, for the partner Autorit Portuale Livorno is focused on studying the
current situation in Italy and offering a view on the problem of transit with ultraperipheral regions. The initiative will also allow Autorit Portuale Livorno to do an on
field analysis with Port operators and economic operators of what seems to be an
obstacle to trade between member states within EU borders.
9

Example: Preparation and presentation of the

outbound and inbound sea declaration process
Outbound sea declaration process

Inbound sea declaration process

10

Partners participating in the initiative

11

Initiative 3. Improvement of
customs and Port control
efficiency in trade flows with EU
Neighbouring countries
Mnica Rivera on behalf of Barcelona Port Authority
B2MOS MID-TERM CONFERENCE
Valencia, 30-31 October 2014

12

Current situation
Initiative 2.3 aims to analyze the trade flows of freight between EU countries (Italy,
Slovenia, Spain) with neighboring countries (Morocco and Middle East Countries).
Different commercial maritime services have been studied in order to obtain common
trends and conclusions to establish global solutions. The three prototypes that are
going to be developed resulted from this analysis.

Figure 1. Three commercial maritime lines analysed

13

Current situation

Port of
Barcelona

3 lines

Roro cargo

Port of
Livorno

Port of
0
Tanger Med

Port of
Koper

Ports
Middle East

(Intereuropa)

Analysis

Figure 2. Tipology of the three lines under study

Analysis

BIP, Customs and others

14

Objective of the initiative

OBJECTIVES:
The initiative main goal is the improvement of customs and port control efficiency in trade flows
with EU neighboring countries. The specific objectives are:
Analyse the customs procedures limitations related to customs process in all the supply chain
of the import-export;
Analyse the phyto-sanitary inspection procedures in force and possible procedure
simplifications.
Determine the process that includes all necessary procedures to declare, release and deliver
the goods from the arrival and departure point in a simple basis form as referring customs and
phyto-sanitary procedures.
MAIN BENEFITS:
Collaborative and efficient approach among different actors working in this
type of traffic.
Time and cost savings for customers (customs agents , hauliers, final
clients.)
Clarify the procedures for the issuance of the customs declaration.
Reducing hard copy documentation and reducing needed time to
prepare/handle requested documentation.
Consolidate the reliability and quality of the SSS.
15

Prototypes included in the initiative

PROTOTYPE 1.

Prototype 1. Port Authority of Livorno (APL)

APL has analysed the loading-unloading process is the admission of different kind of cargo flows
(EU cargo coming from Barcelona and going to Livorno plus cargo coming from Tanger to Livorno)
and of passengers (both schengen and non schengen passengers). The prototype will be oriented
to improve the efficiency for these trades, using electronic handheld to monitor security and
traceability of travelling cargos.
PROTOTYPE 2. Prototype

2. Intereuropa (IE)

IE has analysed the functional and process-oriented overview of cooled cargo flows in short sea
transport with neighboring countries; basic knowledge on maritime freight transport, port
operations, phyto-sanitary controls and customs clearance procedures valid and in use in Slovenian
port community for business through the Port of Koper. The prototype is focused on the
development of a platform based on standard Electronic Data Interchange (EDI).
PROTOTYPE 3. Prototype

3. Port Authority of Barcelona (APB)

APB has analysed the import and export procedures in the commercial line between Barcelona and
Tanger. This analysis has identified three technical solutions allowing to quantify time and
monetary savings. The prototype will be the development of one of these solutions.
16

Partners participating in the initiative

2 port authorities

1 IT company

1 public administration

1 logistic operator

17

Initiative 11. Facilitation of

Customs inspections procedures
in the port area
Catalina Grimalt
B2MOS MID-TERM CONFERENCE
Valencia, 30-31 October 2014

18

Current situation
In many occasions in Barcelona, one physical inspection may block more containers
or trucks or goods declared in the same Single Administrative Document.
Once the inspection is done the clearance is needed as soon as possible. Now the
SAD is released in hours , an important amount is released the next day.
Customs select one container or a truck (in case of a roll-on roll-off traffic) to inspect
from the list of elements declared but the rest of elements are held until Customs
clearance of the chosen one has been obtained. When the inspection is finished, the
customs broker must resend the scanned report of dilligence of the inspection or
even present it at Customs premises to release the rest of the equipment.
An additional problem is posed by the fact that several inspection bodies need to
control and inspect shipments unloaded from a particular vessel and they each have
their own rules and procedures and carry out their work separately from the rest.

19

Current situation
Focus process:

20

Current situation
General process flow:

21

Current situation
In the UK, a number of agencies currently operating Destin8 have
specific examination and local hold functions which are interfaced
with terminal operations systems thus providing consignment status
information to terminal operators as well as the wider community.

22

Objective of the initiative

OBJECTIVES:
Reduce the time required for Customs physical inspections
Ensure full traceability of the inspection process
Use the mobile technologies
Improve the coordination of the different authorities and bodies inspecting the cargo

MAIN BENEFITS:

Reduce process time (time to execute a process activity) and lead time (time elapsed
between the initiation and execution of a process).

Control and mesure the activity of the process

Unique data set

On-line data save

Access to the process information (schedule, procedures)

23

Objective of the initiative

OBJECTIVES:

It is intended to introduce a prototype for new functionality that will be embedded in Destin8
through which Customs whereby UK Borderforce and other government agencies can easily
manage and share presentation of consignments for inspection and other types of detentions,
thus improving status visibility through a single enquiry function.
In addition to these enforcement specific changes we have also included a number of functional
changes that will sustain and ease procedures for transhipments and transit cargo by
automatically approving cargo being transferred between approved and non-approved vessels
without the need for Customs intervention.

24

Methodology
The next figure explains the methodology to analyse the reduction of process times
for a terminal inspection.

FINISH SEND START

25

Prototypes included in the initiative

RELEASED GOODS AFTER INSPECTIONS IN A KIOSK AND ATTACH DUA IN A TABLET APP

26

Prototypes included in the initiative

DES-166 - B2MoS A2 i11 - Prototype RTR\RTD transaction improved auto-clearance for ARSS transhipments.

Improve the control of transhipments in non authorized vessels

DES-5889 - B2MoS A2 i11 - Prototype LHT - new Trading

Standards hold function

Now this function is hold by customs

DES-5948 - B2MoS A2 i11 - Prototype HMRC Hold/Exam

Improvements and Trade Visbility

A single screen for applying and removing holds/exams,

identification of officer and/or agency applying the hold/exam

27

Prototypes included in the initiative

DES-6077 - B2MoS A2 i11 - Extract COO and CN data from

Import CUSDEC

To that end it is proposed we develop new prototype

functionality to extract the Country of Origin and CN codes from
the import CUSDEC declarations being submitted by the
agents via a freight software application. It is estimated that
early provision of this data will reduce Port Health detains on
non-target consignments by some 50000 units per annum at
Felixstowe alone.

28

Prototyped solution:
Home: public view without login. There is logistics information, some real-time alerts and direct
access to Terminal, PIF Area, Scanner and ALL

29

Prototyped solution:
Main Terminal: once an agent is logged on each section (terminal here) he can access to all his
positionings, timetables, procedures, useful URLs and the PIFs screen

30

Prototyped solution:
PIF Screen: from the PIF Area one can access to the public data available via web that is embedded
in the app

31

Prototyped solution:
Positioning orders: a distributor page shows the positioning orders of Aduanas Pujol Rubi sorted
desc. by date. The positionings can be filtered by date and state and contain only partial and primary
information

32

Prototyped solution:
Details: this screen contains the specific data of a positioning and there it is possible to, take a photo,
add it as an attachment and send it to the office by mail

33

Q&A

34

Conclusions of the session

35

Thanks for your attention!

www.b2mos.eu b2mos@fundacion.valenciaport.com

36