Explanatory Memorandum to COM(2014)491 - EU position on the proposal to amend the Customs Convention on the International Transport of goods under cover of TIR carnets (TIR Convention 1975)

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1. CONTEXT OF THE PROPOSAL

1.1.        Grounds for and objectives of the proposal

The Customs Convention on the International Transport of goods under cover of TIR carnets (TIR Convention) of 14 November 1975 was approved on behalf of the European Economic Community by way of Council Regulation (EEC) No 2112/78. The Convention entered into force in the European Union on 20 June 1983.

The purpose of the proposed Decision is for the European Union to adopt the latest amendments to the TIR Convention agreed by the United Nations Economic Commission for Europe (UNECE) Working Party on Customs Questions Affecting Transport and further adopted by the Administrative Committee for the TIR Convention, subject to completion of the EU's internal procedures.

On 6 February 2014 the Administrative Committee for the TIR Convention adopted at its 57th session in Geneva proposals of amendments to Annex 1 and Annex 6 to the text of the Convention. On 12 June 2014 the Administrative Committee for the TIR Convention adopted at its 58th session in Geneva a proposal of an amendment to Annex 9 to the text of the Convention. The proposals will be transmitted to the UN Secretary-General, in accordance with the provisions of Article 59 (1) and (2) and Article 60 of the Convention and shall enter into force on 1 January 2015, unless, by 1 October 2014, at least five Contracting Parties notify the UN Secretary-General their objections to the amendments.

1.2.        General context

The TIR Convention, which is administered by the UNECE, has established a customs transit procedure for the international movement of goods by road. The Convention enables goods, which are under customs and tax suspension, to cross international borders with a minimum of intervention en route by the customs authorities. By easing traditional impediments to the international movement of goods, the TIR system encourages the development of international trade. By reducing delays in transit, it enables significant economies to be made in transport costs. The most important advantage of the system is the fact that the TIR Convention provides, through its international guarantee chain, relatively simple access to the required guarantees.

The UNECE Working Party on Customs Questions Affecting Transport and the Administrative Committee for the TIR Convention agreed that some modifications of the TIR Convention are necessary. These modifications concern:

· the amendment of Annex 1, Model of the TIR Carnet:VERSION 2, point 5 and Annex 6, Explanatory Note to Article 8, paragraph 3, point 5 as a result of the amendments to the International Convention on the Harmonised Commodity Description and Coding system (HS Convention), in particular a creation of a separate subheading in heading 24.03 for water pipe tobacco

· the amendment of Annex 6 introducing two new Explanatory Notes to Annex 9, Part II, paragraphs 4 and 5 regarding the transmission of the data on authorised TIR operators using the International TIR Data Bank (ITDB) online+ application

· the amendment of Annex 6 introducing a new Explanatory Note to Article 38 paragraph 2 regarding transmission of data on exclusions to TIR Executive Board (TIRExB) using the ITDB online+ application

· the amendment of Annex 6 introducing two new Explanatory Notes to Annex 8, Article 9, paragraph 1 and 2 concerning the representation and the election of a TIRExB replacement member

· the amendment of Annex 9, Part I, paragraph 3 (vi) by replacing the existing wording on the deadline of 1 March by an improved text.

1.3.        Existing provisions in the area of the proposal

There are no existing provisions in the area of the proposal.

1.4.        Consistency with the other policies and objectives of the Union

The proposed Decision is consistent with the common policy in trade and transport. The TIR system, providing facilitation in road transport, allows goods to travel across 68 Contracting Parties with a minimum of interference by customs administrations and provides, through an international guarantee chain, relatively simple access to the required guarantees. The simplifications achieved through the TIR Convention are in line with the revised Lisbon strategy.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



2.1.        Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents

Consultations with approval on the proposals were carried out with the Member States within the Customs Legislation Committee (Co-ordination Geneva) meetings. Consultations took place during sessions of the UNECE Working Party on Customs Questions Affecting Transport and the Administrative Committee for the TIR Convention.

Summary of responses and how they have been taken into account

Favourable opinion.

2.2.        Collection and use of expertise

There was no need for external expertise.

2.3.        Impact assessment

The proposed amendment to HS code 24.03.10 is caused by the amendments to the codes of the Harmonised system and does not alter the original product coverage. It leads to an alignment of the provisions in the transit area.

The amendments introducing the possibility to transmit legaly required data on authorised TIR operators and data on exclusions using the ITDB online+ application instead of sending these data in any other form (on paper or by email) introduce a facilitation tool for customs authorities using the ITDB online+ application. This web application, managed by the UNECE TIR Secretariat, facilitates the management of the national TIR Carnet holder's data. The transmission of data into ITDB using electronic means could become mandatory at some point in the future.

The amendments in the procedure regarding the by-election and representation of the TIRExB clarify the situation after a resignation of the TIRExB member and outline the profesional requirements for the prospective TIRExB members. 

All the proposed amendments to Annex 6 do not change the substance of the TIR Convention as according to Article 43 of the TIR Convention the explanatory notes interpret certain provisions of the TIR Convention and its Annexes and describe certain recommended practices. 

The amendment on the wording on the deadline in Annex 9, Part I, paragraph 3 (vi) will ensure proper understanding of the current obligation for the national association to provide the TIRExB annually with the prices of each type of TIR carnet it issues.

2.

LEGAL ELEMENTS OF THE PROPOSAL



3.1.        Summary of the proposed action

The proposed Decision lays down the position to be taken by the European Union concerning the proposal to amend the Customs Convention on the International Transport of goods under cover of TIR carnets.

3.2.        Legal basis

Articles 207 and 218 (9) of the Treaty on the Functioning of the European Union.

3.3.        Subsidiarity principle

The proposal falls within an area of exclusive competence of the European Union (common commercial policy) and therefore does not deserve an examination with regard to the principle of subsidiarity (Article 5 (3) of the Treaty on the Functioning of the European Union).

The proposed amendments were preliminarily adopted by the UNECE Working Party on Customs Questions Affecting Transport and Administrative Committee for the TIR Convention.

3.4.        Proportionality principle

The proposal is in conformity with the principle of proportionality. It allows the implementation of an amendment to the international agreement which as such respects the principle of proportionality.

3.5.        Choice of instruments

Proposed instrument: Decision.

International agreements and amendments to these arrangements are normally introduced into the European Union's legal order by way of a Decision.

3.

BUDGETARY IMPLICATION



The proposal has no implication for the European Union budget.