and customs union

The terrorist attacks in New York, Madrid and London have changed the world in which we live. The fight against terrorism and protection of the citizens has become for governments more than an important issue; it has become a strategic issue. We are facing a serious, new challenge: How best to design and implement effective measures that will successfully defend our trading and transport system from terrorism– while preserving the efficiency of today’s system and the benefits which consumers and, businesses derive from it?

The European Council of 25 March 2004 called for the protection of all forms of transport systems, in order to ensure effective border control and facilitate the adoption and implementation of the strategy for customs co-operation.

On an annual basis,

• 1600 million tons of cargo is transported by sea, and

• 8 million tons of cargo is transported by air, into and out of the European Community.

Worldwide container traffic is projected to grow from

• 104 million containers in 2005 to

• 400-460 million containers in 2010, and

• 510-610 million containers in 2015.

A particular security concern is the potential misuse of a container to smuggle a nuclear or radiological device. The consequences of a terrorist attack related to the international supply chain would bring international transport to a halt, sea ports and airports would be closed, which would have vast consequences for the world economy.

The 2005 Commission work program recognizes that “security is one of the primary expectations of European citizens”. In concrete terms, the Commission intends to focus on a common approach to border control. EU citizens will be better protected against security threats through a coordinated response at the external borders of the European Community. The customs authorities of the 25 Member States play an important role in the fight against cross-border crime and terrorism. Customs expertise in controlling goods, backed up by the use of modern IT systems and an efficient risk assessment, is vital to detect illegal goods such as drugs, explosive materials or nuclear and chemical weapons.

In the last decade, the role of customs has significantly changed from the collection of customs duties to the protection of citizens due to reduced duty rates and increased concerns for safety and security. The main task of customs nowadays in all administrations is the protection of citizens and their interests while facilitating legitimate trade.

The EU Customs Security Program covers activities supporting the development and implementation of measures enhancing security through improved customs controls. The program introduces proper security controls to ensure the protection of the internal market and, in close cooperation with major trading partners in the world, secure the international supply chain.

The program balances controls with trade facilitation. Traders demonstrating compliant efforts to secure their part of the supply chain will be rewarded by benefits such as fewer controls.

The so called "security amendments" to the Community Customs Code which entered into force in April 2005, provides the legal framework for the measures introduced in the EU Customs Security Program.

• Traders are required to provide customs authorities with information on goods prior to import to or export from the European Union (Pre Arrival / Pre Departure Declarations);

• Reliable traders will benefit from trade facilitation measures through the Authorized Economic Operator (AEO) program;

• Introduction of a mechanism for setting uniform Community risk-selection criteria for controls, supported by computerized systems. These three approaches are interlinked and will provide enhanced security through a combination of measures; the provisions are planned to enter into force as of 2007.

The European Community is expecting more security and more facilitation from these rules as for example the use of advance electronic information and electronic systems for risk analysis will enable customs to identify high risk cargo bound for Europe at an early stage in the logistical process. With the new security initiative, Customs will be enabled to carry out more targeted controls on high risk shipments by means of automated systems as well as new technologies.

Technology clearly has a role in increasing both the efficiency of inspecting cargo and the number of shipments that can be inspected. Container inspection technology is of substantial interest because it helps customs to answer quickly and easily the security question of paramount importance “What’s in the box?” Non-intrusive inspection (NII) equipment using x-ray and gamma ray technologies is being deployed at border crossings and in sea- and airports. NII equipment allows customs authorities to have a visual image of a container’s content; it is a relatively easy way to review a container’s content in contrast to physically unloading a container.

Radiation scanning technology is an important tool as well. Radiation detection portals are already used at most of the major border crossings at the eastern land border of the European Union. Trucks bringing cargo into the European Union are passing through the portals.

Currently also more and more sea ports are installing this kind of portals at the gates of cargo terminals. It enables efficient scanning and detection of the means of transport and the cargo with a limited delay for trade.