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);”

Ensuring the security of the global supply chain while facilitating trade is a challenge both for customs authorities and economic operators. To meet this challenge, many countries have introduced additional security measures to reinforce risk management in accordance with the WCO SAFE Framework of Standards.

In risk management, the reliability of traders is of crucial importance. Established authorised economic operators (AEOs) that adhere to security and compliance criteria allow customs to focus on risky trade flows.

In exchange, AEOs receive benefits in form of trade facilitation. Mutual recognition of AEOs provides reliable operators additional trade facilitation benefits in partner countries; it also allows customs to target high risk shipments more effectively.

Mutual Recognition of AEOs with Japan

The implementation of mutual recognition of AEOs between the EU and Japan will begin on 24th May 2011. From this date, AEOs in the EU and Japan will start to benefit from this mutual recognition.

Mutual recognition benefits for EU AEOs in Japan

The implementation of mutual recognition with Japan means that the AEO status of EU importers and exporters will be taken into account during the security risk assessment procedures by Japanese Customs in Japan, if the procedure utlined below is followed. In order to benefit from the mutual recognition in Japan, EU AEO importers and exporters are required to inform their Japanese business partners of their 12 character code for mutual recognition purposes with Japan. These codes have been issued by Japan Customs for all EU AEOs who gave their consent to be included in mutual recognition of AEOs. The European Commission will inform the EU AEOs of these Japanese identification codes by letter. Please note that the code for the purpose of Mutual Recognition with Japan is different from the EORI number of EU companies.

Trade that is coming from EU AEO exporters or going to EU AEO importers will benefit at the stage of the Japanese import / export declaration. The Japanese importers/exporters (or their representatives) will enter the notified 12 character code issued for EU AEOs by Japan Customs for mutual recognition purposes in the relevant electronic declaration field for foreign importers/exporters.

Mutual recognition benefits for Japanese AEOs in the EU

For Japanese companies to receive benefits in the EU, in relation to the security risk assessment at entry or exit, EU traders may be approached by their Japanese AEO business partners and informed of the 14 character mutual recognition code assigned to Japanese AEOs. Alternatively, EU traders may proactively ask their Japanese AEO business partners for their 14 character mutual recognition code. This code should be entered in the declaration form in the field entitled “Documents produced, certificates and authorisations”. In addition, the TARIC code “Y031″ needs to be completed in order to indicate that the cargo is coming from or going to AEOs of a country with which the EU has concluded a mutual recognition agreement regarding AEO programmes. At entry in the EU, the TARIC code “Y031″ and the 14 character mutual recognition code of Japanese AEOs needs to be used in the Entry Summary Declaration, or alternatively in the customs declaration if this declaration replaces the Entry Summary Declaration. At export, the TARIC code “Y031″ and the 14 character mutual recognition code of Japanese AEOs needs to be used in the customs declaration, or alternatively if no customs declaration is required, in the Exit Summary Declaration.

Source: Press release of the European Commission Taxation and Customs Union, 16 May 2011

From June 12th till 14th 2011 the ICPA 2011 EU Compliance Strategy Conference will take place in Brussels. This year’s program has been segmented into two tracks following both import and export topics.

So far the following sessions have been confirmed:
•AEO Update
•EU-US Export Controls
•Transfer Pricing and Customs Valuation
•Security Programs Mutual Recognition Update
•InCoTerms 2010-Understanding The Changes
•Increasing Competitive Advantage via the MCC
•Product Classification – Consistency and Procedures
•Impact of FTA Adoption: CA-EU and KR-EU
•First Sale For Export
•Understanding EU Simplifications
•The EU and Export Sanctions: A Focus on Iran
•EU Dual Use Provisions
•Encryption Regulations and the Exporter
•Export Regulations vs. National Discretion of Member States
•Import Assessments & Voluntary Disclosures in Europe
•CCC Implementing Provisions Update

More details and registration can be found here.

The agreement between the EU and Japan as part of secure AEO certification was signed June 24,2010. From April 1, 2011 starts the assigning of advantages. This means that certified companies in both the EU and Japan can expect fewer controls on their shipments.

This advantage is granted to holders of a European AEO certificate upon the Import procedure which possess the AEO certificate Safety (AEO-S) or the certificate simplified customs procedures/safety (AEO-F) and which gave consent regarding the exchange of AEO-data between the EU and partner countries.

Shipments from Japan: A temporary solution has been found to identify the Japanese certified companies in the customs systems. The Entry Summary Declaration should mention the code Y031 together with the data element ‘Transport document’ and the unique identifier of the Japanese holder of the AEO-certificate. Member States will gradually implement this solution or may use intermediate solutions to identify Japanese AEO certificate holders.

Shipments to Japan: Once you have granted the authorization for the exchange of information, you receive a specific identification number for Japan. This number should be used in the customs declaration which is presented to the Japanese Customs.

In contacts with the EU Customs Authorities you should always use the EORI number which is assigned to your company.