Mr. Algirdas Semeta, the EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud has addressed a Statement welcoming EU-US mutual recognition of safe traders during the Post TEC Press Conference in Washington on 29 November 2011:

A huge step forward has been taken in the EU-US trade relationship – and in securing the supply chain at global level. Yesterday, I met with Secretary Napolitano and had an open and frank discussion of how we cooperate in this field. Following further contacts this morning, I am pleased to announce that the EU and USA have agreed to mutually recognise each other’s security certified operators. This means that smooth trade and secure trade will now go hand-in-hand.

In recognising each other’s safe traders, we are enabling them to enjoy lower costs and simpler procedures at customs, as well as greater predictability and fewer delays in moving goods. In Europe, 4,600 Authorised Economic Operators have been waiting eagerly for this. They stand to become more competitive, as they and their US trading partners will spend less time and resources on validation of their security standards. The 10,000 members of C-TPAT will have a much wider choice in certified counterparts, securing the supply chain from end to end. In short, this agreement will make trade easier and cheaper for companies, at a time when they particularly need such facilitation and support.

It will start to take effect no later than July 2012, once the I.T. systems are set up. So businesses and traders do not have long to wait before they see the benefits. Mutual recognition will also contribute to the enhanced security of both our trade lanes and our citizens, by allowing customs to concentrate their resources on targeting real risks.

As discussed today, we need to continue to work together to make the global supply chain more resilient and better protected against attack. Mutually recognising each other’s programmes is a concrete move in that direction.

This mutual recognition agreement is the result of years of work, involving all EU Member States. It clearly proves the benefits of Trans-Atlantic cooperation. In these times of economic difficulty, such a business-friendly and trade-friendly agreement is truly something to be welcomed.

A Joint Statement was signed in Brussels on 23 June 2011.

To read the full statement, click here.

We have selected the following in the Joint Statement:

“The EU and the US have the largest bilateral trade relationship and, together, account for about one-third of world trade. Other nations rely on transit through our airports, seaports and land border crossings. The partnership between the EU and the US protects these vital economic ties, sets an example and promotes consensus in other organisations. We commit ourselves to continuing our robust dialogue. Through advance communication, prior to taking action, we can be better prepared to respond efficiently and in unison to new treats as they evolve. We should:

• Develop bilateral, cross-agency cooperation and coordination to achieve better integration of customs security procedures with other border security controls, in order to enhance security and efficiency at a lower cost for trade and public authorities;
• Implement mutual recognition of EU and US trade partnership programmes (AEO and C-TPAT);”

Incoterms or international commercial terms are a series of standard trade definitions, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices.

The International Chamber of Commerce (ICC), introduced the first version of Incoterms in 1936. There are currently 13 Incoterms. Among the best known Incoterms are EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To).

The Incoterms have been revised six times in order to reflect international trade developments. The last update of the Incoterms entered into force on 1 January 2000. As the guardian and originator of Incoterms rules, ICC has a responsibility to consult regularly all parties interested in international trade to keep Incoterms rules relevant, efficient and up-to-date. ICC is currently revising Incoterms 2000. This revision is expected to be major on the seller-buyer cargo security obligations, which are linked to respective Custom-Trade Partnership Against Terrorism (C-TPAT) and Authorized Economic Operator (AEO) cargo security regimes.

After receiving a large number of comments from the ICC National Committees, the Incoterms Drafting Group recently completed a third draft of the revised version of Incoterms. After comments on the third draft are submitted by the ICC National Committees, the Drafting Group will meet in March 2010 to prepare a fourth version of the draft revisions to Incoterms. It appears that the new version of Incoterms will be entitled “Incoterms 2010”. This new edition is expected to enter into force on 1 January 2011.

Incoterms – short for “International Commercial Terms” – are standard trade definitions most commonly used in international sales contracts.  Among the best known Incoterms are EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To). 

The International Chamber of Commerce (ICC), introduced the first version of Incoterms in 1936.  Since then, ICC experts in the Commission on Commercial Law and Practice have updated them six times to keep pace with the development of international trade.  The last update of the Incoterms entered into force on 1 January 2000.  

Recently ICC took the decision to review these “Incoterms 2000″.  A major revision is expected on the seller-buyer cargo security obligations, which are linked to respective Custom-Trade Partnership Against Terrorism (C-TPAT) and Authorized Economic Operator (AEO) cargo security regimes. 

As ICC has the reponsibility to consult regularly all parties interested in international trade,  ICC Belgium is currently undertaking an inquiry to make sure that the Belgian companies interested can give their input for changes.  The results of the inquiry will be available as from 15 June onwards.

Click here if you want to follow this inquiry.