Mr. Willie Funnell Chair of CCC

Mr. John O’Leary Revenue Commissioners

Mr. Paul Kennedy Revenue Commissioners

Mr. Seán O’Seaghdha Revenue Commissioners

Ms. Carol Ann O’Keeffe Revenue Commissioners

Ms. Caroline Kennedy Revenue Commissioners

Mr. Colm Martin Revenue Commissioners

Mr. Karl Higgins Revenue Commissioners

Mr. Kieran Burke Revenue Commissioners

Mr. Colm Walsh Irish International Freight Association

Ms. Laura Watts Forfás

Ms. Paula O’Dwyer IBEC

Mr. Brendan Farrell Irish Exporters Association

Mr. Declan Ivory ICT Ireland

Mr. Paul Rodgers ICT Ireland

Mr. Adam Fitzsimons Customs-IT

Mr. Stephen Tracey ICT Ireland

Mr. Stephen Cummins Irish Association of International Express Carriers

Mr. Pat Ivory IBEC

Mr. John Whelan Irish Exporters Association

Mr. Gerard Monks Dept. of Jobs, Enterprise & Innovation

Mr. Martin Agnew Chambers Ireland

Mr. David Putt Irish Ships Agents Association

Apologies:

Mr. Dave Browne Customs-IT

Mr. Brian Cotter American Chamber of Commerce

Ms. Carol Lynch Chambers Ireland

The Agenda was adopted. Four items were added under AOB:

- China Import Service Fee

- Dublin Port – Proposed change to opening hours

- Possible effect to trade regarding Customs retirements

- Accession of Russia to the WTO

There were no matters arising from the report of the meeting held in October 2011.

Position regarding exports

Revenue gave an update to members regarding Safety and Security issues regarding

exports. The safety and security checks in relation to exports are mandatory under EU

rules before the goods leave Ireland. The official operative date is 22nd January but

Revenue is fully aware of the concerns about the possibility of delays arising for

exports when the system goes “live”. Accordingly, Revenue is currently carrying out

an impact analysis programme to determine the true risk pertaining to export SAD’s,

which will be selected for control. This analysis will be carried out over the next few

months. Revenue will work to ensure that, while correctly applying EU rules, the final

system will have a minimal effect on trade. The CCC will be kept advised of progress.

One of the suggestions to take account of the new controls is to submit the export

declaration as early as possible. However, the trade are concerned that the early

submission of entries could cause problems if data had to be amended at a later stage.

The trade representatives enquired if Revenue looked at the possibility of the

submission of “real time” SAD’s. Their main area of concern is the timely response

necessary by Customs officers in the case of corrected SAD’s submitted. The trade

also enquired as to the approach being taken by the EU regarding the early submission

of entries and the consequences resulting from this proposal.

Revenue replied that there is no legal impediment to amending a SAD, but a Customs

officer must accept the corrected SAD entry if the amendment takes place after a

routing has been provided. Revenue explained that EU rules stipulate that a trader can

submit a declaration once the goods are available for presentation (to customs).

However, if the SAD is selected for examination at a late stage, it is acknowledged

that this can lead to logistical problems. Revenue will consider this issue further.

The trade enquired if AEO status would help in alleviating problems. Revenue

confirmed that AEO status does result in a lower risk rating in relation to some

aspects of the controls but this would not necessarily mean that an AEO trader’s

exports would be totally exempt from examination.

Pending completion of the impact analysis it could not be determined definitively

what consignments may be affected, but Revenue assured the trade that any adverse

effect on exports would be kept to a minimum.

The trade enquired if the EU Rules for risk analysis are openly advertised. Revenue

replied that each Member State operates under the same set of EU rules that primarily

consider three aspects:

• who the trading partners is

• the intended destination of the product and

• the nature of product being exported.

However, for obvious reasons, the precise detail of the actual risk rules is considered

by the EU to be confidential.

Position regarding safety and security checks on imports (ICS)

Revenue said that there was no further update in relation to ICS, apart from some

technical problems with the system. Revenue enquired from the trade if they had any

comments or concerns that they would like to express concerning ICS. However, no

specific concerns had arisen.

Air cargo transport

Revenue informed the trade that EU Risk Experts have concerns regarding the timely

receipt of safety and security information relating to air cargo transport. Essentially,

following the Yemen incident, these Experts have come to the view that data on air

cargo movements would have to be provided before the plane takes off for the

Community. However, it was recognised that this could have a significant impact on

trade especially the express carrier industry.

Accordingly, a group has been established at EU level comprising the Commission,

Member States, and Express Carriers with the purpose of analysing the (raw) data

being held by express carriers to see if this could be used in some way. It is expected

that this process will be completed in 2012, at which stage formal proposals from the

Commission can be expected. Meanwhile, if there were concerns about the direction

this was going, Revenue encouraged the trade to express their opinions and concerns

regarding this issue at their respective EU trade representative forums.

The trade enquired about the progress in the mutual recognition and

acknowledgement of the Air Cargo security Known Consignor and Recognised Agent

status with the Customs AEO status. They are aware that a group has been set up to

examine the alignment and wondered if Customs had a representative on this group.

Revenue said that a Department of Transport official is the representative on this

group. It was agreed that Revenue would seek an update from Transport for the next

meeting of the CCC.

Postal traffic

Revenue advised of increasing attention at EU level to the lack of data for safety and

security risk analysis of postal consignments. Unlike the express carrier industry, who

provides certain pre arrival/departure information, signatories to the Universal Postal

Union Convention (i.e. Postal Authorities) provide no advance data to Customs.

While not underestimating the challenge, the possibility of enhanced controls for

postal traffic has been mooted and this would be taken up by the EU Commission

with the UPU. It was understood that other countries (such as Canada) were already

going down this road. Revenue will keep the CCC advised as more information

becomes available.

Revenue briefed the meeting regarding Irelands EU Presidency, beginning in January

2013, from a Customs viewpoint. Ireland (Revenue) will be chairing EU meetings of

two groups, the Customs Union Group (CUG) and the Customs Cooperation Working

Party (CCWP).

The CUG deals with customs legislation and customs policy issues. The group

coordinates EU and common positions in relation to international organisations such

as the World Customs Organisation (WCO). One of the main areas of focus for the

CUG is expected to be the recast of the Modernised Customs Code.

The CCWP is the coordinating group within the Council with responsibility for taking

forward initiatives in the field of Customs cooperation. It deals with enforcement,

smuggling, joint Customs investigations and data exchange and its primary function is

to build better co-operation mechanisms not only between Customs administrations of

the EU but also between Customs and Police Authorities.

Revenue pointed out that under Lisbon rules the European Parliament would have a

much more significant say in relation to any legislative proposals being considered at

Council. If, for example trade had a difficulty with some aspect of a Commission

proposal (e.g. the change of the customs valuation rules in the MCC) the possibility of

lobbying EP members would be a possibility.

Revenue informed the trade that they would welcome any insight or suggestions they

may have on what customs priorities should be during the Irish Presidency. The trade

responded that they would be interested primarily in CUG issues. They wondered

how transparent the process would be and if Revenue could provide them with a

briefing report on the prevalent issues at CUG currently, and going forward.

However, Revenue pointed out that all significant customs proposals under

consideration at the CUG had always been advised to the CCC. In any event Revenue

will circulate a briefing note on the operation of the CUG.

Mutual Recognition of AEO

The process of mutual recognition of AEO (Authorised Economic Operator – the EU

system) and C-TPAT (Customs Trade Partnership Against Terrorism – the US

system) began in 2006. The legal declaration confirming mutual recognition is due to

be signed before the end of July. The practical arrangements for applying mutual

recognition will then be agreed. Respective participants of both programmes will then

be able receive the relevant benefits.

Revenue advised that China, Russia, and Canada are also in discussion with the EU

regarding the possibility of similar mutual recognition agreements.

The trade acknowledged the long process involved in finalising this agreement but

welcomed the progress made and offered to help in any way to advance the process

towards the final stage if required. The Department of Jobs Enterprise Trade and

Innovation, as part of their trade facilitation agreement, will also monitor the progress

of the process.

The trade enquired if holders (mainly large multi-nationals) of both AEO and CTPAT

status should consider exiting from the C-TPAT. Revenue agreed that this

might be a possibility but it was best not to make any changes yet until the practical

arrangements of mutual recognition had been worked out between the EU and US.

Revenue confirmed that they would continue to keep CCC members fully advised on

further progress.

Recast of Modernised Customs Code

At previous meetings, members were informed that the Commission had decided to

submit a proposal for a new MCC Council Regulation. This was because the

comitology rules (i.e. how the implementing legislation is to be adopted) in the

original MCC Council Regulation did not reflect the changes brought about by the

Lisbon Treaty.

The formal text from the Commission of the new proposal (which is being referred to

as the “recast MCC”) is still awaited. However, the most significant issue with the

recast MCC will be the comitology arrangements proposed by the Commission. In

essence, the Commission will want a situation where implementing provisions are

decided by the Commission to the greatest extent possible. This will be a significant

change from the present situation where most implementing provisions require a

qualified majority agreement from the Member States. The change needs to be

carefully considered and much of the debate in the Council (including the CUG) on

the recast MCC is likely to revolve around how much power is delegated to the

Commission.

The new proposal is expected from the Commission shortly and examination of the

text is likely to commence under the Danish Presidency. However, the discussion will

likely carry over into subsequent Presidencies, including the Irish Presidency.

Once the Council Regulation is adopted the Commission are likely to press ahead

with the implementing provisions, possibly for adoption by mid 2014. The MCC will

then finally come into play at some date after that.

Revenue gave a PowerPoint presentation to members regarding IT developments that

are envisaged over the next two years. These included both developments at EU level

and national level. The texts of the slides are attached to these minutes.

During questions on this item it was clarified by Revenue that the electronic manifest

was being designed to “fit in” with the proposals developing at EU and confirmed that

manifest data is required in line with EU legislation. This data is currently provided to

Revenue (and other official organisations) in hard copy format. Once the electronic

manifest is introduced the data can be shared with other organisations that require it,

thus easing the burden for trade in submitting manifests to different organisations.

Some other minor changes will be needed. For example boxes on the SAD that are

presently optional fields will change to mandatory (e.g. the identification for Mode of

Transport).

As the electronic manifest is developed, Revenue will hold to keep the trade fully

advised. An interface test facility will also be available for the trade.

China Import Service Fee

The Department of Jobs Enterprise Trade and Innovation has become aware of an

issue that resolves around traders being levied with an “import service fee” by the

agent/transporter when importing from China. While the precise reason for the change

is not always clear, the issue primarily seems to centre on groupage loads - if the

agent does not fill the container being shipped, the agent will levy an additional

charge against an importer/importers of the goods in the consignment. The

Department would like to highlight this issue to the trade representatives and for them

to make their clients aware of the issue. IIFA and IEA indicated that they were

already aware of this practice that is sometimes called by varying names. In order to

avoid the charge consideration could be given to purchasing goods from China on a

fob basis or ensuring that a full container load is purchased where possible.

Dublin Port – attendance times by customs at container compounds

Revenue advised regarding proposed changes to the customs hours of attendance at

container compounds in Dublin Port. There are currently three container compounds

in the Port area that have a customs presence until 7 pm. While a final decision has

yet to be made, the proposed change is that Customs attendance at these compounds

will cease at 3 pm. However, where necessary, a full customs service will continue to

be provided at the New Customs House on Promenade Road.

The trade requested a one-month consultation period in order to discuss this proposal

with their clients and to identify any consequential implications. During this period,

the trade representatives will attempt to try and find out what exporters may be

affected and perhaps seek alternative arrangements. Similarly, it will also need to be

investigated if the new proposal causes a problem for importers, particularly regarding

seals. The trade will respond to Revenue with an update before the end of February.

Related to this issue, the trade expressed their appreciation that the issue regarding the

stamping of excise documents had been overcome.

Staff retiring from Revenue at end February

A trade representative enquired what provisions are in place for the anticipated

number of Revenue retirements up to the end of February and if the retirements would

have a knock-on effect for trade. Revenue responded that there would be some

challenges involved in maintaining service levels but that appropriate plans are being

put in place. Trade representatives were invited to highlight any particular areas

where they feel particular difficulties are likely to arise.

Russia’s Accession to the WTO

A trade representative drew the attention of the CCC to the accession of Russia to the

WTO. The process of becoming a World Trade Organisation member is unique to

each applicant country, and the terms of accession are dependent upon the country's

stage of economic development and the current trade regime. The concern was

whether Russia would adhere to the WTO rules and what to do if this was not the

case.

The Department of Jobs Enterprise and Innovation representative advised that, as part

of WTO procedures, an offer of accession is only given once consensus is reached

among interested parties. Russia has been accepted for membership in December

2011, and WTO rules will enter into force 30 days after ratification. He also informed

members that WTO Members can take compliance issues to the WTO if they

experience problems in trading with Russia. In addition, the Market Advisory

Committee in Brussels offers another avenue for trade if they wish to pursue any

matters of concern regarding trade. The DJEI representative told members that

literature on the benefits of the WTO agreement can be circulated to the CCC, if

required.

CCC members were also informed that from the 1st of February, traders in Argentina

require a licence for all imports they they undertake. CCC members were advised to

inform their clients/traders that it may be prudent for exporters to make sure that their

consignee has an import licence prior to exporting their product.

It was agreed that the next meeting would be held on Wednesday the 23rd of May

2012 at 11am in Apollo House.

The Chairman said that she was delighted to accept an invitation from the CCC to

address members and said it was appropriate that the 50th meeting of the Committee

coincided with Willie Funnells’ last meeting as Chair of the CCC. She informed

members that this was her second time to address the CCC, the first being to express

thanks to the Committee for the smooth transition to AEP 2 (Automated Entry

Processing).

The Chairman remarked on the minutes from the meeting of the very

first CCC, held in 1994, and how the membership of the Committee had changed

during that time. She spoke about the CCC being a partnership forum, where Customs

and Trade work together, making progress where possible. The importance of the

CCC and the accomplishments it has made in resolving issues is widely recognised.

In summing up, the Chairman thanked everyone for their on going contributions to,

and support for, the CCC.

Referring to the retirement situation, the Chairman assured trade representatives that

Revenue will continue to provide the best possible customer service, whilst

acknowledging the fact that it will prove a challenge with fewer staff numbers. She

spoke about how the coming retirements will not be easy but it requires patience and

for the trade to communicate and alert Revenue if any customer service issues arise.

The trade representatives thanked the Chairman for taking the time to attend the

meeting. They also complimented Willie Funnell on his Chair of the Committee since

1997 and wished him well in his retirement.

Kieran Burke,

Secretary,

January, 2012.