EUROPEAN COMMISSION

DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
-Security & Safety, Trade facilitation & International coordination
Risk Management and Security

Brussels, 28/05/2010

TAXUD/B2/005/2010- EN

CUSTOMS CODE COMMITTEE

GENERAL CUSTOMS LEGISLATION SECTION
(CCC-GEN – AEO SUBSECTION)

Subject: Minutes/summary record of the 4th meeting of the Customs Code

Committee – General Customs Legislation Section (AEO subsection)
of 06 May 2010

1. Adoption of the Agenda

The agenda was adopted with the inclusion of the following item under AOB:

1. Information on the reorganization of Taxud;

2. Regulation 197/10 – Introduction of the amendment

2. Approval of the minutes of the 3rd meeting of the CCC-GEN (AEO Subsection
held on 04 December 2009 TAXUD/C6/033/2009- EN

The Minutes were approved.

3. AOB

3.1

The New Head of Unit B2 presented himself and explained the new organization of
TAXUD and the reasons that led to it. Particularly, it was stressed that the new
organization should lead to more homogenous activities and in speeding up tasks
and processes.

Some MS asked if the new organization will have any impact on the work related
with the AEO issues.

COM assured that the work related to the AEO issues will be conducted at TAXUD
level by the same people and that there will no major impacts on the way the AEO
work is structured.

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3.2

COM tanked MS for the contribution and support provided in the process for
adopting the new legislation and asked to be informed about any problems that
could have raised after its adoption. FR reported a problem related to the possibility
of extending the issuing period in the EOS. COM informed that it was aware of the
problem, as ES had already informed about the same problems, and that IT people
was already working on a solution to it.

Part II: Items regarding the implementation of the Modernised Code

COM presented the latest state of play of the discussions on MCCIP (AEO part) in
particular revision 3 of doc. TAXUD/C6/1851/2008. MS were informed that this
document is to be red together with the provisions on the "horizontal part", doc.
TAXUD 1707/2009/ Rev. 3.3 – EN.
COM provided a "table of correspondence" between the two documents in order to
facilitate the discussion. It was also agreed to follow article by article in order to see
how the provisions have now been structured and spitted between "horizontal part"
and specific AEO part.
The discussion took also into account comments received by MS on doc.
TAXUD/C6/1851/2008 Rev.3 and summarized in the TEMPO form as from
29.04.2010. All the comments had been discussed and COM undertook to reflect
the agreed issues and changes in the next updated version of the MCCIP.

The discussions covered mainly the following issues:

• Article 123-02 'Description of benefits': regarding this article some MS asked a
clear definition of the benefits. In the list should also be mentioned the
entitlement to a guarantee waiver according with art. 62.2 of the MCC. COM
agreed on the fact that AEO benefits should be clearly defined, but informed MS
that this is possible only trough a clear indication for each single customs
simplification which are the criteria applicable and that an agreement has been
reached based on which in each specific parts there should be a clear reference to
which AEO criteria is involved. The same also applies for comprehensive
guarantee. A MS raised a specific question related to article 123-02.7 in the part
where it is stated out that "if the AEO so request, and subject to agreement with
the customs authority concerned, these controls may be carried out at a place
which is different from the place of the customs office involved". The MS
concerned expressed its view that this benefit should be further specified as a
request to a single customs operation as it could be result in a way for getting the
same result of a local clearance procedure but without having an authorization.
COM explained that the provision is quite clear referring to a single
"consignment" and, in addition, this benefit could be granted only on the base of
an agreement with Customs, so there is no possibility of any misuse of the
concerned benefit. The same MS also asked clarification about article 123-02, 8)
requesting to better specify the benefit of "carrying out the necessary controls as
a matter of priority", as in some busy customs office like ports or airports, it
should be necessary to define an order of priority. COM agreed but explained
that this is an operational matter to address case by case or providing examples in
the guidelines and that it is not appropriate to have it the legislation. The MS
concerned asked explicitly to put in the minutes the discussion on these points
and to clarify them in the guidelines. COM agreed on both the proposals;.

• Article 123-03 – Application for an AEO certificates – MS asked information

about the discussion on making mandatory the self-assessment questionnaire.
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 COM informed that it is exploring the idea of having a SAQ mandatory and still
have the possibility of easier amendment of its content without having to go
trough the overall legislative process. All MS supported the approach, inviting
COM to go ahead in exploring the possibility of "mandatory + flexibility". Some
MS asked for having the application just in electronic form to be compliant with
article 5, paragraph 1 of MCC. COM agreed that in principle that it correct and is
the leading principle however for the time being the IT scoping and different
approaches both for MS and for economic operators are still under discussion so
the current wording allowing the two possibilities will remain till the general
approach is agreed. Regarding the last paragraph of the article a MS raised the
question related to the meaning of PBE and if it would not be better to use the
term branch instead. COM explained that the idea is to cover with the term PBE
any kind of organization which on permanent basis make business in a MS and
that what is important here it is not the way the operator is organized but whether
it can be considered as "established in the Community" according article 4,26)
MCC or not. Some MS also raised the question that these provisions should be
part of the "horizontal provisions" as it could concern more other decisions and
not only AEO's and invited COM to keep this in consideration. COM explained
that as a result of the internal discussion held it was found that these provisions
are applicable only for AEO, however engaged to inform once again to inform
the unit responsible for the horizontal issues.;

• Article 123-06 – AEO criterion on customs and tax compliance – A MS raised

the issue that article 123-06, 1, a) could go beyond the article 14, letter a) when
requiring that the applicant has not been convicted of a serious criminal offence
linked to its economic activity, and asked COM to involve the legal service in
the issue in order to clarify it. COM agreed and promised to raise the issue to
legal services.

• Article 123-08 – AEO criterion on solvency – COM presented the new draft of
the article and explained that this is a very first draft which aims to open the
discussion on this point in order to better qualify the article itself and try to
identify in a more significant way the most important requirements. The most
relevant issues were: 1) some MS expressed their view that as this is a matter of
national competence and it is difficult to find a unique solution and they would
rather keep the previous text; 2) other MS observed that having the concept of
bankruptcy in the solvency is something that goes beyond what is required in the
MCC and asked COM to verify this; 3) some MS asked to reflect in the article
also any information that could put at risk the solvency in the future, following
the example of the transit legislation. COM took note of all comments and
engaged to redraft the Article in that sense, however it pointed out that there
should be clear rules on how the financial solvency is checked

• Article 123-09 'AEO criterion on practical standards of competence and

professional qualifications': MS asked for redrafting of the article in order to
keep separate the concept of "professional qualifications" and "practical
standards of competence" – COM agreed on the proposal;

• Article 123-10 'AEO criterion on security and safety standards': Some MS

asked to redraft the paragraph 4 in order to take into account the new regulation
on aviation security (Reg. (EC) 300/208 and Reg. (EC) 185/2010) in order to
take into account the status of Known Consignor. COM engaged to take this
comment on board.

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 On the remaining articles a general consent has been reached.

COM engaged to continue ensuring the coordination with the discussion of the
horizontal issues.

Chair: Mr. Tomas Kucirek, Mrs. Tonka Kostadinova, TAXUD/B2

Representatives of the customs administrations of 26 Member States: AT, BE, BG,

CY, CZ, DE, DK, EE, ES, FI, FR, HU, IE, IT, LT, LV, MT, NL, LU, HU, PT, PL, RO,
SE, SI, SK, UK + NO, CH and TR (observers)

AT: Ministry of Finance

BE: Ministry of Finance, Customs Administration

BG: National Customs Agency

Cyprus: Ministry of Finance – Customs & Excise Dept.

CZ: Customs Administration

DE: Bundesministerium der Finanzen

DK: Danish Tax and Customs Administration

EE: Ministry of finance

ES : Departemento de Aduanas e Impuestos Especiales

FI: National Board of Customs

FR: Direction de Douane

HU: Hungarian Customs and Finance Guard

IE: Permanent Representation

IT: Agenzia della Dogane

LT: Customs department

LV: National Customs Board

LU: Direction des Douanes et Accises

MT: Ministry of Finance, the Economy and Investment; Customs Division

NL: Ministry of Finance

PT: Ministério das Finanças e da Administrçao Publica

PL: Ministry of Finance

RO: National Customs Agency

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SE: Swedish Customs

SI: Ministry of finance

SK: Ministry of Finance; Customs administration

UK: HM Revenue and Customs

NO: Directorate of Customs and Excise

CH: Directorate General of Customs

Representatives of the Commission:

Mr Tomas Kucireck TAXUD/B2

Ms Tonka KOSTADINOVA TAXUD/B2
Mr Gaetano SASSONE TAXUD/B2