Session 1. Facilitation of customs declaration compliance. Ana Arévalo, Barcelona Port Authority B2MOS MID-TERM CONFERENCE Valencia, 31 October 2014
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1 Session 1. Facilitation of customs declaration compliance Ana Arévalo, Barcelona Port Authority B2MOS MID-TERM CONFERENCE Valencia, 31 October
2 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 2
3 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 port s areas need to be improve in time savings and ensuring the full traceability of the inspection process. 3
4 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). 4
5 Initiative 1. Trade facilitation with ultra-peripheral regions Miguel Llop Valenciaport Foundation B2MOS MID-TERM CONFERENCE Valencia, October
6 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 Departure manifest 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. Introduction SAD & T2LF Territory where Community rules for VAT apply ENS Arrival Manifest / SDTS Territory where Community rules for VAT do not apply 6
7 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 thecustoms 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
8 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
9 Prototypes included in the initiative PROTOTYPE 1. 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 Autorità 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 Autorità 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
10 Example: Preparation and presentation of the outbound and inbound sea declaration process Outbound sea declaration process Inbound sea declaration process 10
11 Partners participating in the initiative 11
12 Initiative 3. Improvement of customs and Port control efficiency in trade flows with EU Neighbouring countries Mònica Rivera on behalf of Barcelona Port Authority B2MOS MID-TERM CONFERENCE Valencia, October
13 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
14 Current situation Port of Barcelona 3 lines Ro ro cargo Port of Livorno Port of 0 Tanger Med Port of Koper (Intereuropa) Ports Middle East Analysis Analysis Figure 2. Tipology of the three lines under study BIP, Customs and others 14
15 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
16 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
17 Partners participating in the initiative 2 port authorities 1 IT company 1 public administration 1 logistic operator 17
18 Initiative 11. Facilitation of Customs inspections procedures in the port area Catalina Grimalt B2MOS MID-TERM CONFERENCE Valencia, October
19 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
20 Current situation Focus process: 20
21 Current situation General process flow: 21
22 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
23 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
24 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
25 Methodology The next figure explains the methodology to analyse the reduction of process times for a terminal inspection. FINISH SEND START 25
26 Prototypes included in the initiative RELEASED GOODS AFTER INSPECTIONS IN A KIOSK AND ATTACH DUA IN A TABLET APP 26
27 Prototypes included in the initiative DES B2MoS A2 i11 - Prototype RTR\RTD transaction - improved auto-clearance for ARSS transhipments. Improve the control of transhipments in non authorized vessels DES B2MoS A2 i11 - Prototype LHT - new Trading Standards hold function Now this function is hold by customs DES 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
28 Prototypes included in the initiative DES 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 units per annum at Felixstowe alone. 28
29 Prototyped solution: Home: public view without login. There is logistic s information, some real-time alerts and direct access to Terminal, PIF Area, Scanner and ALL 29
30 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 PIF s screen 30
31 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
32 Prototyped solution: Positioning orders: a distributor page shows the positioning orders of Aduanas Pujol Rubió sorted desc. by date. The positionings can be filtered by date and state and contain only partial and primary information 32
33 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
34 Q&A 34
35 Conclusions of the session 35
36 Thanks for your attention! 36
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