Coordinated Border Management in the Netherlands

DOSSIER Coordinated border manag in the Netherlands

By Frank Heijmann, Jos Ensing, Roel van‘t Veld In this regard, the European Commission and Marcel Neggers, (EC) has launched a series of projects CUSTOMS POLICY & ENFORCEMENT UNIT, DUTCH CUSTOMS aimed at improving collaboration with EU Customs authorities, various enforce- In executing its various missions, the Dutch Customs ment agencies from EU Member States, and a number of European logistics Administration traditionally collaborates with industries industry organizations, including the European Shippers’ Council, the European involved in cross-border trade and increasingly with Association of Freight Forwarders, and other enforcement agencies on matters concerning logistics service providers. Dutch Customs is currently participat- health and safety, the economy and the environment. ing in these EU projects, sharing previous experience gained in the Netherlands in Dutch Customs believes that efficient use of each other’s order to constructively contribute to the improvement of collaboration between expertise and information can prevent duplicate checks, Customs authorities and other enforcement agencies, both cross-border and at and will help to reduce the administrative workload home.

for bona fide enterprises. This article takes a look at AEO-RA/KC alignment One of these projects relates to finding the various initiatives aimed at improving coordinated existing commonalities between enforcement agencies’ certification programmes, border management in the Netherlands, and gives an such as the Authorized Economic Operator (AEO) within the domain of Customs, and overview of the layered approach Dutch Customs has the Regulated Agent/Known Consignor (RA/KC) within the domain of civil avia- adopted in the supervision of flows of goods. tion authorities.

ONE OF THE key goals of the strategic contributed to the discussions on best It may be worth repeating that an AEO Customs policy plan of the Netherlands practices for creating or enhancing col- is an operator who has been granted this is to improve cooperation between enfor- laboration between Customs and other status by the Customs authority of an EU cement agencies responsible for matters enforcement or regulatory agencies, Member State, after it has been established of safety and security, human and ani- including authorities responsible for air that the operator meets the following com- mal health, and the economy and the freight security. mon criteria: Customs compliance; appro- environment. priate record-keeping; financial solvency; In this article Dutch Customs shares the and, where relevant, appropriate security The intended outcome is that Customs experience of the Netherlands, focus- and safety standards. will be able to work more efficiently while ing first on projects undertaken at the minimizing logistics delays for legitimate European Union (EU) level, and then Operators may only receive AEO status international trade, which is of crucial moving to purely national initiatives after the Customs authority issuing the importance for trade and the competi- which might be of interest to Customs status has ensured that the operator meets tiveness of the logistics industry in the administrations around the world. the criteria for the issuing of a certificate. Netherlands as a whole. An examination is, in principle, carried Developments at the EU level out on all the premises relevant to the Over the past years, Dutch Customs The EU has made the improvement of col- Customs-related activities of the operator. has been actively participating in the laboration between enforcement agencies work undertaken at the WCO on coor- one of the seven key objectives of its new An RA is an air carrier, agent, freight for- dinated border management, and has risk management strategy. warder or any other entity who undertakes

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security controls in respect of cargo and mail. A KC is a consignor who sends cargo or mail for his/her own account and whose procedures meet common security rules and standards sufficiently enough to allow the carriage of cargo or mail on any aircraft.

Both entities require approval by the aviation security authority of an EU Member State to become an RA or a KC. Approval may only be granted after an onsite verification of the relevant premises has con- firmed that the entity complies with the applicable security requirements. This onsite verification is carried out by the appropriate authority or on its behalf by an EU aviation security validator.

Proposals were made by the EU AEO-RA/ KC project group to further integrate Customs legislation and air freight legis lation through mutual recognition of certifications, which will help unify the application and monitoring processes of both enforcement agencies, thereby reducing the industry’s administrative load and cost.

These proposals led to the publication of the EC’s implementing regulation (EU) No. 889/2014 of 14 August 2014 amend- ing Regulation (EEC) No 2454/93, regarding recognition of the common security requirements under the RA/KC programme and the AEO programme.

The new regulation updates the refe rences to the aviation legislation in force, includes recognition of the KC status and its relevance to AEOs, frames the scope of recognition of the common requirements between the respective programmes, and allows for the necessary exchange of information between Customs and aviation authorities.

Air cargo security and data submission Customs, the Ministry of Finance and the Ministry of Security and Justice of the

23 © Andreas Wecker DOSSIER

Netherlands jointly participate in activi- Member States’ Customs administrations Dual use goods ties concerning the EU Air Cargo Security in cooperation with aviation and home In the first half of 2014, the EC launched Pilot/Study. The aim of these activities is to affairs authorities. a project to look at ways to improve col- improve the air cargo security risk based laboration between responsible enforce- approach by using advance cargo informa- For subsequent mitigation of air cargo ment agencies in the field of AEO certifi- tion (ACI) that is submitted pre-loading. security risks, a first draft of a protocol, i.e. cation and the issuing of licences for ‘dual a detailed schedule for adequate operator’s use’ goods – goods that can be equally In examining the process flow of the tra- responses, was developed jointly by the EC used for civil or military purposes and ditional air cargo model, it was found that and EU Member States to ensure cohe which in some cases are subject to export both the carrier and the freight forwarder rency and alignment between Customs restrictions because they can also be used already have the data – called ‘raw data’ as and civil aviation security legislation. for purposes of repression, aggression or it is yet to be analysed – needed for secu- terrorism. rity risk analysis purposes, but at different AEO/ISPS-code alignment points of time. In the maritime domain, the EC is inves- In this project several EC Directorate tigating the overlap between AEO safety Generals participate jointly with Customs This raw data, collectively called 7+1, con- criteria and the certification require- administrations and other responsible sists of a set of seven data elements (the ments for the International Ship and Port authorities to compare relevant AEO cri- consignor’s name and address, the con- Security Programme (ISPS-code) regard- teria with the criteria for issuing dual use signee’s name and address, the descrip- ing maritime safety and security, based on licences, including investigating any pos- tion of the goods, the piece count, and the EU legislation. sible overlap. weight) and an identifier (the House Air Waybill number, or H.A.W.B. number). As part of a joint preliminary enquiry Developments at the national level undertaken by the Dutch and Belgium Dutch Customs has been able to improve Therefore, with the aim of ensuring that Customs authorities, it has already been inspections partly through internal action, Customs gets the data early enough, and found that AEO safety criteria largely for example by training staff, by defining that it is of sufficient quality to enable echo the safety criteria in the ISPS-code, unambiguous work arrangements, and by Customs to conduct the first layer of which concern the security of shipping harmonizing procedures and methods. security risk analysis, a study was under- lines, port facilities and businesses ope taken to test the feasibility of gathering rating at ports. Of course, many inspections require pre-loading information and the appro- extensive collaboration with other inspec- priateness of using the raw data for secu- The risk analyses of the security of port tion services involved in the cross-border rity purposes. sites and businesses that need to be car- transport of goods. Hence, exchanging ried out for the ISPS programme to a great information, utilizing each other’s capa This ACI, the so called ‘7 + 1’ initial data, extent coincide with the requirements city and combining checks is absolutely forms the beginning basis of the Customs set for the AEO security status. Further necessary. risk assessment process for air cargo secu- steps will be taken to investigate this spe- rity. The data is subjected to an electronic cific overlap in order to aim for possible Single Window for Trade and Transport risk analysis process against common improvement in collaboration between As part of the Dutch e-government pro- risk rules established by the EC and EU enforcement agencies. gramme, the Dutch authorities have © Nils van Rooijen

24 WCO news N° 76 February 2015

designed Digipoort, the government’s throughout the EU to be done electroni- supply chains, reduce administration, and ‘electronic post office’ for businesses. It cally in a harmonized way, as required by work more efficiently. provides the communication infrastruc- EU Directive 2010/65/EU – commonly ture for the exchange of digital informa- known as the Reporting Formalities or Within NLIP, various existing information between companies and government ‘FAL’ Directive. tion platforms set up by business opera- authorities. Digipoort enables companies tors, such as Cargonaut – the informa- importing and exporting products to sub- The development of these platforms will tion system for the air cargo industry, mit information aimed at multiple govern- run until mid-2015, after which addi- and Portbase – the information system ment authorities once. tional projects will be launched within for the port communities of Amsterdam the framework of the SWTT programme. and Rotterdam, including the govern- To enhance this exchange of information ment’s Digipoort, will be linked. It will and intensify collaboration with industry, Neutral Logistics Information Platform only encompass new industry platforms a programme called the Single Window for (NLIP) as they are created. Trade and Transport (SWTT) has been Logistics has been designated as a spear- launched. It will act as an industry-wide head industry of the Dutch economy by The aim is to enable, through NLIP, the IT platform (public and private) to facili- the government. The re-use of informa- exchange of data stored on all these plat- tate seamless integration of the logistics tion throughout the logistics industry and forms. This data will then be available for network. between the industry and the authorities re-use in various applications in use by the could make the logistics industry even economic operators and government par- Within this programme, the authorities more efficient and competitive. ties involved. involved in the inspection of international goods flows have agreed to improve their In this context, Dutch Customs is working Updating Inspections Programme joint service level, by means of coordinated with several private and public entities to In addition to making preparations for the risk selection and efficient calculation and develop the Neutral Logistics Information establishment of SWTT and the NLIP, a processing of import duties for example. Platform (NLIP). It will enable all supply number of authorities have spent recent This will eventually result in the one-stop chain partners to input information once, years working on updating maritime shop concept, and consequently less red and then share it throughout the entire inspections to increase their effect and tape – physical Customs, environmental chain. reduce any burden. and veterinary checks on goods will take place simultaneously. Originators of infor- Dutch Customs is This is what the mation will control Updating Inspections The SWTT programme is being developed who has access to working with several Programme is all in stages from the following two platforms: t he informat ion, private and public about, with increased the Maritime Single Window (MSW) and and when. The aim collaboration between the Inland Navigation Single Window of NLIP is to assist entities to develop inspection authorities (BSW). Both platforms will enable, as of shippers, logistics the Neutral Logistics being implemented in June 2015, all reporting between ships providers, ports and the domain of inland arriving in and/or departing from ports government depart- Information Platform navigation and sea of EU Member States and authorities ments to optimize (NLIP). It will enable all port controls. supply chain partners to input information once, and then share it throughout the entire chain.

25 DOSSIER In this programme, inspection authorities are increasingly operating as a single In this programme, inspection authori- better data exchange enforcement agency. EU Customs legis- ties are increasingly operating as a single between businesses lation is now being enforcement agency. Not only is this a and the government, Not only is this a reviewed in Brussels more efficient method for the enforcement and between busi- more efficient method by the EC in an community, it also reduces the inspection nesses or govern- attempt to modernize load for the industry by preventing dupli- ment bodies them- for the enforcement the Union Customs cation of controls. By sharing inspection selves, and to come community, it also Code (UCC). This results, surveillance authorities get to up with intelligent research into new know the bad apples in the cart and can applications that will reduces the inspection forms of supervision improve their targeting. Risk analyses can enable businesses load for the industry by may eventually lead also be used to set priorities, and com- to optimize their to new legislative ini- pliant businesses, such as AEO certified logistics processes preventing duplication tiatives in the UCC by companies, will be inspected less often. and at the same of controls. 2020, or beyond. time give Customs Another great example of efficient and access to better data Pushing boundaries modern supervision lays in the publica- for their inspection Dutch Customs has tion of an annual Transport by Water tasks, thereby reducing the administra- developed a layered approach to enforce- Surveillance Plan, another collaborative tive burden of Customs supervision on ment concept that will be of benefit to both effort between agencies involved in ensur- businesses. Customs and the bona fide business com- ing compliance and fighting fraud in this munity. This risk-based approach results in field. Lastly, the academic challenge in the field fewer – and less disruptive – interventions of legislation and regulations is to remove in the logistics of reliable businesses, and Research perspective legal barriers to the use of innovations in in more inspections of other businesses. compliance management so that there is Innovation in Supply Chains Compliance better data exchange between businesses Depending on the information that is and Border Management (ISCOM) and the government, and between busi- available on the underlying parties, The ‘Innovation in Supply Chains nesses or government bodies themselves, aspects regarding the movements of Compliance and Border Management’ for the transport of goods being exported goods are segregated into unknown trad- research programme focuses on innova- from or imported into the EU. ers, the known and trusted traders (AEO), tion and efficiency improvement in the and smart and secure trade lanes – the cooperation between top sector logistics To illustrate this last point, we take a look future aim being that Customs inspec- businesses and Dutch Customs. at the situation in the EU. In Europe, tions, in principle, will take place in cross-boder operations have to com- exporting countries. For this purpose, pioneering academic ply with EU Customs legislation which projects are sought in one or more of falls within the jurisdiction of the EC, in There are three main supervision scheme the following research areas: compliance particular the Directorate-General for or commodity flows in this approach, with management; ICT infrastructure; and Taxation and Customs Union (TAXUD). a different mix of control mechanisms legislation and regulations. The research being applied to each of them: is being conducted by a consortium of To transport these goods, one also has to academics with at least one business part- comply with EU legislation pertaining • The blue flow are unknown traders – ner that contributes to the research work to product safety, health, economy and Customs therefore intervenes inten- and funding. the environment on the one hand, and sively in the logistics at the border based to the transport legislation of national on risk analyses; The academic challenge in the area of governments on the other. All these dif- compliance management is to develop ferent regulations create specific informa- • The green flow are trusted traders – new supervisory models for reducing the tion streams, according to specific data Customs, based on the proven relia administrative burden for international structures and times at which the relevant bility of the trader, makes observations, trade and transport on the basis of war- obligations must be fulfilled. preferably outside of the logistics pro- ranted trust, cooperation between the cess where appropriate in light of the government and businesses, and deter- To achieve effective and coordinated bor- risk involved, to verify that traders are mining the business case for enterprises der management, it would be desirable acting correctly; to increase visibility and security in the for businesses to pass on information to goods chain so that government supervi- the government once. This requires legal • The yellow flow represents trusted trade sion can be based on this. research into the possibilities of harmo- lanes – Customs works to secure entire nizing data structures and the times at chains, in accordance with the provi- While the academic challenge in the which obligations must be fulfilled with- sions of the WCO SAFE Framework of field of ICT infrastructure is to pro- out affecting the intended purpose of the Standards. Customs is cognisant of every duce innovations that will allow for relevant legislation and regulations. link in these chains from beginning to

26 WCO news N° 76 February 2015

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Anzeige-MCA-WCO-Feb-15.indd 1 02.12.2014 09:21:21

end, and can say of these goods enter- on the business community’s faith in the The success of the ing or leaving the Netherlands that “we concept. This is already the case with, for layered approach in know who packed the box”. This system, example, the AEO system, which is, in in principle, makes it feasible to restrict essence, founded on economic operators’ the supervision of the inspection of these goods to one trust in the system. Similarly, secure trade goods depends on the inspection at the time they are loaded lanes can operate solely when businesses in a marine or air container. perceive the benefits available to them willingness of fellow and are prepared to invest in innovation enforcement agencies Coordinated border management to reap those benefits. The success of the layered approach in to keep pace with the supervision of goods depends on the Customs has – under its ‘pushing bounda- Customs’ vision and willingness of fellow enforcement agen- ries’ motto – set a point on the horizon cies to keep pace with Customs’ vision and for a layered approach: a vision that will operational approach, operational approach, as this is necessary serve as a benchmark for reviews of all the as this is necessary if the Dutch business community is to gain measures to be implemented in the future, potential benefits. marking the final destination of Customs’ if the Dutch business approach in the years to come. community is to gain It will then be possible to create the SWTT sector, and to set up one checkpoint at the Dutch Customs is firmly of the convic- potential benefits. border, with all supervisory authorities tion that their adoption of this approach carrying out their inspections at the same will ensure a balance between continuing place in the transport chain and at the support for the Netherlands’ leading posi- same time. tion in international logistics rankings and protecting the EU and its citizens. However, the success of this concept is not only dependent on Customs and More information other agencies, it is equally dependent [email protected]