Excise tariffs are different in the Member States of the European Union. The excise duty must be paid according to the excise tariff of the Member State where the excise goods will be consumed and to the Member State where the goods will be consumed. The EU is developing the Excise Movement and Control System or EMCS to carry out control of transit of excise good between the member states by using a computerized system.

EMCS is an electronic EU wide arrangement that will be applicable from 1 April 2010 for the transport of excise goods for which no excises have been paid yet. This system applies in principle to all excise duty goods which concern alcohol and alcoholic beverages, tobacco products and energy products.

EMCS will replace the paper-based procedure, where the circulation and control of intra-community movements of excise goods in duty-suspension can only take place between authorised economic operators and must be accompanied by a paper-based document – the Accompanying Administrative Document (ADD) and a guarantee financially securing the movement, both of which can only be discharged when the goods arrive at their destination.

Due to the introduction of EMCS, transit of the excise goods on which no duty has yet been paid or excise duty suspension procedure will be accompanied by the electronic ‘administrative document’. The realization of EMCS is meant to help to tackle excise fraud by creating a faster and more efficient means of information exchange between excise authorities. The new system is intended to provide better management and control of intra-EU duty suspended movements of excise goods, and to simplify procedures for warehouse keepers.

Each member state will develop its own national EMCS application which will connect to all other countries though a central interface enabling data exchange maintained by the EU. The “electronic AAD” will enable electronic messages containing specific consignment and movement information to be exchanged throughout the EU, from the time the movement begins to receipt of goods at destination. EMCS will link over 80,000 traders with 25 national administrations across all EU Member States. The EMCS Computerisation Project will specify and support the operation of EMCS across all Member States.

Specialist software suppliers are developing solutions based on the country specific requirements which will allow fully automated exchange of messages with the authorities systems of each country. The Belgian Customs Authorities will also put a free EMCS web application for the concerned operators.

EMCS will gradually be implemented in different EU Member States during a transitional period starting from 1 April 2010 to 31 December 2010. During this transitional period, the paper-based system will continue alongside the electronic system. In order to simplify the coexistence of the two systems, any given movement that starts with one of the two systems (paper or electronic procedure) should finish with the same system by the consignee of the excise goods. As a result, companies having the necessary permits to receive excise goods in EMCS will be required to handle the receipt of those excise goods electronically in EMCS. On 1 January 2011, the written ‘administrative accompanying document’ ceases to exist.

Noël Colpin, the Administrator of the Belgian Customs and Excise Administration, will be in charge of ‘Globally Networked Customs’, a high level WCO working group. ‘Globally Networked Customs’ is an important element of the WCO vision for Customs in the 21st century.

Information technology has enabled customs to be connected electronically to each other, which facilitated the exchange of information in customs operations, including border protection. Therefore the WCO issued in June 2008 ‘Customs in the 21st Century’, a document that sets out strategic direction for customs worldwide. It describes the new challenges and role of customs in the 21st century, explains customs missions and objectives underpinning it. It provides information on development of the new strategic direction for customs and explains the future role of the WCO. In particular, it highlights the coordinated border management and globally networked customs.

The new challenges of the 21st Century demand a new concept of Customs-to-Customs cooperation, a closer real-time collaboration between Customs administrations and between Customs and business in facilitating legitimate trade and undertaking Customs controls, in support of the international trading system.

Therefore a global Customs network was created in partnership between the public and the private sectors to support the international trading system, the so-called ‘e-Customs network’.

The aim of the ‘e-Customs network’ is to ensure seamless, real-time and paperless flows of information and connectivity. This includes mutual recognition of Customs controls and Authorized Economic Operator (AEO) programmes.

The Recast Regulation 428/2009 on export controls of dual use items has been published in the OJ of the EU, L 134, 29 May 2009. This Regulation shall enter into force on 27 August 2009. As a result, the existing Regulation 1334/2000 shall be repealed.

Article 6 (1) of the Regulation 428/2009 allows each Member State to prohibit the transit of non Community Dual Use items listed in Annex I of the Regulation on case by case basis, namely when there is a serious risk of diversion for Weapons of Mass Destruction purposes in the third country of destination. The Member States shall notify to the European Commission the authorities in charge of prohibiting such operations and such information will be published in the OJ of the EU (As provided for in Article 6 (4)). The Member States shall also notify the Commission if they extend the provision of the Regulation to also prohibit on case by case basis non listed items in transit as allowed by the article 6 (2) of the Regulation. In order to prohibit the transit on case by case basis, the Member State may decide to resort to adhoc ex ante authorisations for certain non Community Dual Use items in transit. The Member State shall notify the Commission accordingly and the Commission will publish such information in the OJ of the EU (Article 6 (2). If a Member State issues an authorisation for transit under these circumstances, such authorisation shall only be valid in that Member State (during discussions in the Council, the MS refused that the authorisation be valid under certain circumstances in all MS as is the case for export authorisations).

The Article 5 of the Regulation allows for ad hoc controls of brokering of dual use items that are listed in Annex I and not located on the EU Customs Territory but subject of transactions between third countries. A member State may extend such controls of brokering activities to non listed items and will notify the Commission that will publish the information on the OJ of the EU (Article 5 (2). The broker will have to request an authorisation for brokering if he has been informed by the competent authorities of the Member State where he is established or if he is aware that such items may be diverted for WMD purposes (Article 5 (1). The authorities in charge of controlling brokering in the Member States will be defined by each Member States and notified to the Commission. The Commission will publish this information on the OJ of the EU. A member State can opt that the broker has to ask for an authorisation for brokering if he has ground for suspecting (and not only is aware) a WMD diversion in conformity with article 5 (3). The Member State will notify the Commission of such policy.

Exporters may consider appropriate to contact their national authorities to enquiry about the options intend to take for transit and brokering (in particular if they extend the controls to non listed items) and what shall the national authorities in charge (customs, foreign affairs, defence, economy, any other administration).

Annex I of Regulation 428/2009 is the list of items and technologies controlled as recently updated to be in conformity with the last changes in Wassenaar, Missile Technology Control Regime, Nuclear Suppliers Group and Australia Group. A summary of changes is available on the DG website to facilitate implementation.

Annex IV lists the items that are subject to licensing prior to their transfer within the EU. It has been updated as well.

A number of articles of “old” Regulation 1334/2000 are now given a different number. The “catch all ” article remains article 4. Article 5 that used to be on national public control lists is now Article 8. Ex article 9 on denials is now article Article 12. Ex article 17 on record keeping becomes Article 20.

The conditions of use of the EU 001 Community General Export Authorisation have been modified but continue to be detailed in Annex II part 3. It has been made clear that ex ante registration, if requested nationally, is automatic and cannot take more than 10 days. Exporters must notify the first use of EU 001 no later than 30 days if there is no ex ante obligation imposed by the MS where the exporter is established. MS may require additional information on the items exported.

Source: EU Commission DG Trade

The EU Commission and the Member States are implementing the EORI number or Economic Operators Registration and Identification number. The purpose of the EORI number is to have one unique identification number for each Economic Operator that should be recognised by all EU customs authorities. Such an identification number will serve as a common reference for the identification of economic operators in their relations with the customs authorities of the EU and for the exchange of information between these authorities and where appropriate, between customs authorities and other government departments and agencies.
The EORI number is mandatory as of 1st July onwards.

Who need to be registered ?
Economic Operators involved in customs related activities or mentioned on customs declarations.

In what Member State does an Economic Operator need to be registered ?
An economic Operator needs to be registered only in the Member State in which it is established for activities covered by customs legislation. The EORI number is unique and valid in all Member States of the EU. Operators of 3rd countries have to apply for their EORI number in the Member State where a customs declaration mentioning this operator is first submitted. The EORI number will be valid in all countries of the EU.
Example: Economic Operator X established in Germany imports goods via the port of Antwerp. The goods are released into free circulation in Belgium. As X is established in Germany, it needs to obtain an EORI number in Germany. The EORI obtained in Germany must be mentioned on the import declaration in Belgium.

EORI identification number
The EORI number will be structured as an identification number stating the country code of the Member State, e.g. BE followed with a numeric number. For Belgium this numeric number corresponds to the VAT number.

Registration procedure
Most Member States foresee in an automatic registration for those economic operators that are already known for customs. In case you don’t receive your EORI or a confirmation about your EORI, you will have to ask it to the competent authorities in your Member State. The Member State granting the number will validate the information included in the application form and process this information in both a national and a central EU system. Data will be exchanged between Member States and the EU Commission.

Implementation and application in Belgium
If your company is registered in the NCTS system, you will automatically receive a letter stating that your TIN number or Traders Identification Number is valid till end June. In the same letter the EORI number replacing the TIN number from 1st July onwards is mentioned.
If your company is known in the PLDA system, you should also automatically be informed with a letter informing your EORI number.
If by June, 10th, you have not been informed about your EORI, you need to apply yourself for an EORI number.

EORI on the customs declaration
According to the Commission Regulation n° 312/2009 of 16th April 2009 (OJ L 98, 17 April 2009), the EORI number should be mentioned in following boxes of the customs declaration:

For export, re-exportation, outward processing, community transit and/or proof of the community status of good:.
In Box 2: Consignor/Exporter. When the consignor/exporter does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 8: Consignee. If an EORI number has not been assigned to the consignee, enter the number required by the legislation of the Member State concerned.
In Box 14: Declarant/Representative. If the declarant/representative does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 50: Principal. In this box, you should enter the full name and address of the principal, together with the EORI number referred to the principal. Where the EORI number is provided, Membe States may waive the obligation to provide the full name and address.

For release for free circulation, inward processing, temporary importation, processing under customs control, customs warehousing and the entry of goods to free zones subject to type II controls:
In Box 2:Consignor/Exporter. If an EORI number has not been assigned to the consignor/exporter, enter the number requested by the legislation of the Member State concerned.
In Box 8: Consignee. When the consignee does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 14:Declarant/Representative. When the declarant/representative does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.

Some shippers don’t know enough about the transport of their products to understand what they really need from their freight and logistics service providers, according to Dr Andrew Traill, managing partner of Shippers’ Voice. He reminds them that, ultimately, it is them who are responsible for meeting certain legal requirements.