Taxation and Customs UnionTaxation and Customs Union

ROLE OF CUSTOMS IN STRENGTHENING REGIONAL

INTEGRATION

J. Taylor

DG TAXATION AND CUSTOMS UNIONInternational affairs and technical assistance

EPA Seminar for EU outermost regions (OR)and overseas countries and territories (OCT)

Brussels 13-16 June 2005

Taxation and Customs UnionTaxation and Customs Union

INTRODUCTION

• EPA NEGOTIATIONS

• EU-ACP CUSTOMS COOPERATION

• EU CUSTOMS UNION

• CUSTOMS AND TRADE FACILITATION

• SECURITY OF THE LOGISTIC CHAIN

• CONCLUSION

Taxation and Customs UnionTaxation and Customs Union

EPA NEGOTIATIONS

IMPLICATIONS FOR CUSTOMS

• MARKET ACCESS

• RULES OF ORIGIN

• ADMINISTRATIVE COOPERATION

• TRADE FACILITATION

• MUTUAL ADMINISTRATIVE ASSISTANCE

Taxation and Customs UnionTaxation and Customs Union

EU – ACP CUSTOMS COOPERATION

• CUSTOMS COOPERATION COMMITTEE• STRENGTHENED COOPERATION• EXCHANGE OF INFORMATION• BINDING RULES AND COMMITMENTS• FACILITATION FOR LEGITIMATE

OPERATORS

Taxation and Customs UnionTaxation and Customs Union

EU CUSTOMS UNION

• TWO OR MORE CUSTOMS TERRITORIES GROUPED

TOGETHER

• ELIMINATION OF CUSTOMS DUTIES BEWEEN MEMBERS

• COMMON EXTERNAL TARIFFS

• SETS OUT MINIMUM REQUIREMENTS

• SHOULD NOT BE CONSIDERED TO BE DEFINITIVE OR

NECESSARILY THE SOLE POSSIBLE DEFINITION

• PRINCIPLE OF FREE CIRCULATION OR BASED UPON

GOODS ORIGINATING IN THE MEMBER STATES

Taxation and Customs UnionTaxation and Customs Union

EU CUSTOMS UNION

" THE COMMUNITY SHALL BE BASED UPON A CUSTOMS UNION WHICH SHALL COVER ALL

TRADE IN GOODS "

Taxation and Customs UnionTaxation and Customs Union

STRUCTURE

• EUROPEAN COMMISSION• COUNCIL OF THE EUROPEAN UNION• 25 MEMBER STATES OF THE EUROPEAN

UNION• OTHER INSTITUTIONS

Taxation and Customs UnionTaxation and Customs Union

CUSTOMS LEGISLATION

• COMMON EXTERNAL TARIFF• COMMUNITY CUSTOMS CODE• CODE IMPLEMENTING PROVISIONS• BINDING INTERNATIONAL AGREEMENTS

(COTONOU)

Taxation and Customs UnionTaxation and Customs Union

COOPERATION

• COMMISSION – MEMBER STATES

• BETWEEN MEMBER STATES

• BETWEEN MEMBER STATES AND THIRD

COUNTRIES

Taxation and Customs UnionTaxation and Customs Union

CUSTOMS AND TRADE FACILITATION

• CUSTOMS SHOULD PROVIDE EFFECTIVE

CONTROL AND ADEQUATE TRADE

FACILITATION

• LEGISLATION AND PROCEDURES SHOULD

BE BASED UPON INTERNATIONAL

STANDARDS AND MODERN METHODS

Taxation and Customs UnionTaxation and Customs Union

CUSTOMS AND TRADE FACILITATION

• COOPERATION

• LEGISLATION AND PROCEDURES

• RELATIONS WITH BUSINESS COMMUNITY

Taxation and Customs UnionTaxation and Customs Union

SECURITY OF THE LOGISTIC CHAIN

• NEED TO RECONCILE FACILITATION

REQUIREMENTS WITH THOSE OF SECURITY

• REVISION TO COMMUNITY CUSTOMS CODE

• WCO

Taxation and Customs UnionTaxation and Customs Union

CONCLUSION

FREE TRADE AREA BETWEENCUSTOMS UNIONS

• PREFERENTIAL TARIFF TREATMENT AGAINST PROOF OF ORIGIN

• NO QUANTITATIVE RESTRICTIONS FOR GOODS BENEFITING FROM PREFERENCES

• GOODS TRAVEL FREELY ONCE ENTERED FOR FREE CIRCULATION

• MECHANISM FOR ACHIEVING ALIGNMENT AND RESOLVING DISPUTES