General information

 

General information

The electronic customs project initiated by the European Commission aims to replace paper format customs procedures with EU wide electronic ones, thus creating a more efficient and modern customs environment. The project's dual objective is to enhance security at the EU's external borders and to facilitate trade. It should therefore benefit both businesses and citizens.

Electronic customs is a major development for the EU's Customs Union.  

Genesis of the project

The customs union is one of the pillars of the European Union and is at the heart of the internal market. Current legislation on customs procedures and processes is rather complex and is still based on paper declarations, and although all Member States have electronic customs systems, they are not inter-connected. The Commission considers that, with simplified customs legislation, streamlined customs processes and procedures and convergence of IT systems, traders would save money and time in their business transactions with customs. This would enhance the competitiveness of European businesses and thereby advance the main goals of the EU strategy for growth and jobs. In addition, these changes would improve safety and security checks, which would benefit all citizens.

The first step to the EU-wide electronic exchange of customs declarations was established with New Computerised Transit System started in 1997. As a contribution to the "e-government" programme, in July 2003, the Commission published its communication on a paperless environment for customs and trade which provided a vision of a modern customs service communicating electronically with trade. This vision was endorsed by the Council Resolution of December 5, 2003 which called for a Multi-Annual Strategic Plan for the creation of a European electronic environment, consistent with the operational and legislative projects and developments already scheduled or underway in the areas of customs and indirect taxation.

Subsequently, the Commission drafted a plan which sets down the vision, objectives, the strategic framework and the milestones to implement the electronic customs initiative. The MASP is also intended to provide interested parties with a short overview and background information on projects and key issues related to the evolution of the electronic customs initiative and the present state of play.

The electronic customs declaration of goods, i.e. when goods are declared at a customs office by submitting a customs declaration in electronic form via the electronic communications channels, is widely practiced in the world today.

In Russia, the first electronic customs declaration was submitted in 2002. However, this form of declaration did not become common at that time because it had no relevant legal basis and the customs offices were not adequately equipped. Electronic declaration and the submission of documents in electronic form for customs clearance were legally enshrined when the Customs Code was adopted in 2003.

In 2004, the Federal Customs Service adopted several legal acts determining the procedure for electronic declaration, then it gradually began to be used by the customs authorities, and certain participants in foreign trade switched to that form of declaration.

In 2008, electronic declaration received a new impetus when the Federal Customs Service developed the means for electronically declaring goods through the Internet. So there are now two methods of electronically declaring goods, namely the traditional method, when goods are declared through the allocated communications channels, and their declaration through the Internet.

These two types of electronic declaration differ, inter alia, in that when the Internet declaration is used, the declarant submits documents attached to the electronic declaration to the customs authorities, filling in the special electronic XML forms drawn up by the Federal Customs Service for most of these documents (invoice, waybill, etc.), while in the event of an ordinary electronic declaration, the documents attached to the electronic declaration are usually sent in their scanned, unformalized form. As regards the location of the declarant and the customs office, the Internet declaration does not depend on the distance between them, while for an ordinary electronic declaration they have to be in the same vicinity.

The advantages of the Internet declaration are that there is usually no need for the declarant to be personally present at the customs office, and that customs clearance is performed rather quickly, taking as little as 15 minutes to release the goods after the electronic declaration is sent out. Also, after sending the electronic declaration, the declarant receives electronic notifications concerning all the stages of the declaration movement: receipt at a customs office, acceptance, release, etc.

However, no specialist will maintain that the Internet declaration is the most simple and convenient method of declaration in all cases. In the event of such a declaration, documents must sometimes be presented in hard copy (e.g. when risks are revealed according to the risk management system applied by the customs service). Besides, the Internet declaration does not fully rid the declarant of the need to regularly visit the customs authority, e.g. when a customs inspection is being conducted, and in some other cases.   

At the same time, many experts believe that under certain circumstances the Internet declaration really speeds up the customs clearance procedure. For instance, ED2 (Internet declaration in legal language) may be conveniently used by participants in foreign trade who regularly declare relatively homogeneous items with more or less the same set of documents. Exporters and importers whose goods are not subject to certain types of risks may also fully perceive the advantages of ED2.   

However, using the Internet declaration is not as simple as merely switching on the Internet. The declarant must sign the relevant agreement with the Federal Customs Service, and his information systems must meet certain information security requirements and pass a special test. There is also a simpler variant when, for Internet declaration purposes, use is made of the services of the so-called “operator,” i.e. an intermediary company that went through all the coordinating procedures with the Federal Customs Service of Russia and entered into the relevant agreement. In this case, the above requirements do not apply to the declarant’s information systems.  

Not all the customs offices can currently accept electronic customs declarations in the ED2 form yet, especially because they are inadequately equipped with the necessary hardware. However, the Federal Customs Service has worked out and is implementing the program for gradually introducing ED2 throughout Russia. The list of customs offices that are adequately equipped is being continuously renewed on the official web site of the Federal Customs Service of Russia.  

The Concept of Customs Clearance and Customs Control of Goods at the Localities in the Proximity of the State Border of the Russian Federation is currently being implemented in Russia. In implementing the concept, the declaration of goods by means of ED2 will presumably be conducted as usual in the customs offices inside the country, while actual control will be exercised at the customs offices located in the border constituencies of the Russian Federation (the so-called “remote release”).

Electronic declaration is common in many countries. There is interesting system of electronic declaration in Brunei.

Brunei e-Customs

In late August 2006 the Brunei Royal Customs and Excise Department [RECD] called a tender for development and implementation of an e-Customs System. The project to support RECD’s strategic objectives and move towards the implementations of Brunei Darussalam national single windows [BDNSW].

The e-customs system was to provide an integrated electronic trade documentation system that will allow the trading community in Brunei Darussalam to submit applications electronically to RECD for processing. The system also allows RCED officers to process application received electronically or perform their day-to-day operations.

In essence the e-customs systems were to facilitate the trading activities involved in import and export of goods across borders and to facilitate the collections of revenues by RCED.

Other government agencies [OGAs] that requires e-Customs Information for their internal processing can access the e-Customs Systems provided they are connected to the e-Government Intranet or have some form of Internet access from their offices.

enefits of Brunei e-Customs

RCED benefited through the following manner:

1. Central and common storage of data has enable ease of information extraction, sharing and facilitate timely compilation of operation statistics and management reports. 
2. Ease of Retrieval – Information is kept in electronic form, which can be retrieved easily for reference purpose, compared to time-consuming method in retrieving of old hardcopy documents. 
3. Facilitate Trade – the system has provided convenience for traders by enabling them to submit document to RCED via the internet. Traders save costs by not having to travel to Customs offices. 
4. Facilitate Customs Operations by:

• Having a fully integrated system that allows different RCED sites to work together independently. 
• Enabling risk management and central monitoring of risks and targeting cargoes/passengers. Once targeted, all checkpoints can be automatically alerted. 
• Faster turnaround time for declaration processing, payment collection & accounting and cargo clearance, which resulted in costs saving for RCED and traders. 

e-Customs System

• An Integrated electronic trade documentation system

o Ability to accept the submissions of applications electronically 
o Allow RCED officers to process applications received electronically and perform day-to-day operations 
o Auto calculations of Customs Duties 
o Automated billing and tracking of Customs payment 
o Developed in a web-based environment accessible through any web-enabled devices from any place, anywhere at any time

• Able to integrate with any web applications installed within and outside the department

• Able to interface[using interoperability standards] with trading community

o Other government agencies system 
o Trader external third party system etc. 
o Foundation for development of Brunei Darussalam National Single Window

• Certain functions able to generate e-mails, alerts and reminders to the client/users

e-Customs Module

1)Declaration System 
Provides electronic submission and processing of Customs Declaration. Adopting ASEAN Single Administrative Document [SAD] and ASEAN Data Model.

2)Customs Permit System 
Provides electronic submission and processing of Controlled goods by Customs and Other Government Agencies [OGA]. First step of integrating with OGAs towards National Single Window.

3)Manifest Management System 
Provides electronic submission and reconciliation of Manifest information. Moving towards integration with BIACC and e-Ports to reduce data entry by shipping agents.

4)Revenue & Accounting System 
System to allow cashiers to perform collection of Customs payments and issue electronic receipts. Will reduce manual revenue accounting by Customs Officers, and moving towards integration with Treasury TAFIS.

5)Valuation System 
System to allow valuation officers to establish baseline for value of goods to be declared, and automate checking of goods under/over declared in Customs Declaration.

6)Warehouse Management System 
Manages Customs License warehouses, and monitor the goods stock balance inside the warehouses.

7)Risk Management System 
Monitors and prevents Customs risks by performing Advance Clearance on every approved declaration using pre-define risk profiles.

8)Liquor Information System 
Registers all liquor brought into Brunei Darussalam and monitor the liquor concession for every passenger.

9)Vehicle Entry System 
System to allow officers to register and monitor all the local and foreign vehicles that enter and leave Brunei Darussalam.

10)Customs Inventory System 
Captures inventory of seized goods in all customs warehouse, tracks all the movements of these items from seizure, auction, or destroyed.

11)Tariff Classification System 
Manages all the information regarding the classified goods, such as HS Code, Duty Rate, Goods Description, Unit of Measure, etc. Standardize how goods should be declared in Customs declaration.

12)Checkpoint Clearance System 
Registers all activities performed at the checkpoint for Import, Export and Transit cargoes. Such as cargo release, quantity, cargo examination result.

13)Preventive & Intelligence System 
Provides registration of every Customs investigation, and Customs offences information.

14)Trader/Agent Registration System 
Register every company that transacts with Customs for Import, Export of goods. Manage registration of Customs Agents who are authorized to submit Customs declaration in e-Customs.

15)User Administration System 
Manages login IDs and access rights for e-Customs System.

16)Common Services System 
Maintains common information such as Current Exchange Rate, Customs Location Code, System Configuration, Reporting Tools, etc.