23-24 June 2009 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

European Commission Taxation and Customs Union

Data harmonisation in the Single Administrative Document

(SAD)

The EU E-customs project

Prospects for South Caucasus countries

Jean-Luc Delcourt TAXUD-C-1

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

Presentation structure

Single Administrative Document origin, context, harmonization dimension, SAD reform ...

International standards Prospects for South Caucasus

3

European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SADOrigin

The 1980s: Multiplicity of documents (then more than 200) to cover

• Different Customs procedures• In different countries• For different modes of transport

Need for simplification and rationalization of Customs declarations processes.

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

The SAD

• Rationalizes and reduces administrative documentation

• Ensures openness in national administrative requirements

• Reduces amount of data

• Standardizes and harmonizes data

SADContext and objectives

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SADStandardizes and

harmonizes data (1) Use of common codes for as many data elements as

possible Trader identification numbers (boxes 2, 8 ...) Delivery terms (box 20) Nature of transaction (box 24) Preference codes (box 36) Procedure codes (box 37 – partially) Valuation method code (box 43) Special mentions (box 44 – partially coded) Tax types (box 47) Mode of payment (box 47) Warehouse identification (box 49) Guarantee (box 53)

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SADStandardizes and

harmonizes data (2)

As far as possible international standards Country codes (iso alpha 2 codes – ISO 3166-derived)

(Boxes 15, 17, 21, 34 ...) Currency codes (box 22 – ISO 4217)) Modes of transport (boxes 25 and 26 – UN-ECE rec. 28) Customs offices (box 29, 51 – UN LOCODE - partially) Package codes (box 31 UN-ECE rec. 21) Commodity code (box 33 – HS code) Documents identification (boxes 1, 40, 44, partially 1001

Edifact codes) ...

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SADGeographical scope

Legal instruments

Used in the EU and EFTA since 1.1.1988

• Community level: Customs Code and its Implementing Provisions (Reg. 2913/92, Reg. 2454/93)

• International level: Conventions on Simplification of Formalities and on Transit

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SADEvolution so far

Designed originally as a first step towards abolition of formalities in the EU, it has now virtually disappeared for intra EU trade since the 1993 internal market

30 countries use it within a common legal framework (18 in 1988)

Many countries use forms copied or inspired by the SAD (i.e. through ASYCUDA)

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Brief summary

The SAD replaced about 200 different forms in the 18 original user countries

Through data reduction and standardisation, the SAD reduces traders and Customs workload

The SAD as a form is more and more often replaced by EDI systems

The harmonisation effort achieved to set up the SAD facilitated the introduction of the current EDI systems

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Developments after 1988

• G7 >> WCO data model

• Widespread computerisation of customs declarations systems

• Development of EU Electronic Customs Project

Need to harmonize further data and codes in the perspective of more computerisation and more integration of Customs declaration systems

SAD Reform

11

European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Reform

• Implementation on 1.1.2007(Some Member States applied it earlier)

• Reduction of data requirements by 26 %

• Reduction of optional requirements by 43 %

• Non-coded data at Community level greatly reduced

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Reform (2003-2007)

DATA CODING – Average ALL PROCEDURES70% reduction of non-coded data

All procedures - Situation before SAD reform

10,9

15,3

0,2

0,0

25,1

Quantities

EU coded

EU and Nationalcoded

Partial EU coded

Non-coded

All procedures - Situation following SAD reform

10,5

16,7

2,4

1,0

7,3

Quantities

EU coded

EU and Nationalcoded

Partial EU coded

Non-coded

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Reform DATA SET (AVERAGE ALL PROCEDURES)Overall reduction of data requirements by 26%Overall reduction of Optional elements by 43%

> Publication of national data and coding where no harmonisation possible.

Data requirements

21

28

2

51

2016

2

38

0

10

20

30

40

50

60

Mandatoryfor MS

Optional forMS

Optional fortraders

Maximal list

Number of data

elements (Average per procedure)

Before the SAD reform Following the SAD reform

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

SAD Reform Implementation

IMPLEMENTATION – TEXTS

• Publication of reg. 2286/03 on 31 December 2003• Implementation date on 1.1.2007• Some Member States applied it earlier

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

International standards

Wherever possible, all these developments are conducted in coherence with international instruments such as:• WCO framework of standards – WCO data model• UN-ECE standards and recommendations

Where this is not possible, the EU links with the relevant organisations to maintain those instruments.

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

Data harmonization from the perspective of the SAD

and its use in South Caucasus countries • By nature, the SAD encourages and presupposes

• Data requirements as harmonized as possible in their definitions and representations

• The use of international standards for data and codes This enables traders to provide export and import data to customs at a

lower cost: Data can be « recycled »: • from export to import formalities / declarations, • from commercial to Customs documentation.

This ensures better quality of data for Customs administrations.

• The connection and integration of national procedures in a coherent, global standards-compliant, modernized framework is paramount for the development of the economy and the modernization of public systems.

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European Commission /Taxation and Customs Union

Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi 23-24 June 2009

THANK YOU VERY MUCH FOR YOUR ATTENTION

ANY QUESTIONS ?

• Jean-Luc DELCOURT

European Commission - TAXUD C/1 Telephone: + 32 2 296 23 24 Fax: + 32 2 296 59 83 e-mail: Jean-Luc.Delcourt@ec.europa.eu

• Web: SAD page of TAXUD website