Smart Border 0 Avoiding a hard border on the island of Ireland for Customs control and the free movement of persons

International standards and best practices

There is a range of international standards and best practices governing the operation of secure and smooth borders for people and goods, many of which are relevant for the border between Ireland and Northern Ireland. Other standards and best practices also form part of the

At borders as a matter of course, the processing of goods (and vehicles and thei r drivers) and people should be separated to reduce congestion and ensure that the right measures are being applied to facilitate fast movement across the border.

1. 
   Trusted Traders
   

Authorised Economic Operator (AEO) programmes (also known as trusted trader Secure and Facilitate Global Trade (SAFE)⁴².
Trusted trader programmes work on the principle that companies that are able to meet specific compliance and/or security standards in their day-to-day operations will receive benefits in their trade across borders, both for imports and exports. The types of benefits



³⁸ Governments of Canada and USA, US and Canada Smart Border Declaration (2001), available at http://www.legislationline.org/documents/id/7543, accessed 26 October 2017.
³⁹ Proposal for a regulation of the European Parliament and of the Council establishing an Entry/Exit System (EES) to register entry and exit data and refusal of entry data of third country nationals crossing the external borders of the Member States of the European Union and determining the conditions for access to the EES for law enforcement purposes and amending Regulation (EC) No 767/2008 and Regulation (EU) No 1077/2011 COM/2016/0194 final - 2016/0106 (COD) (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52016PC0194; see also European Commission, Migration and Home Affairs, Smart Borders (https://ec.europa.eu/home-affairs/what-we- do/policies/borders-and-visas/smart-borders_en, accessed 26 October 2017).
⁴⁰ European Parliament legislative resolution of 25 October 2017 on the proposal for a regulation of the European Parliament and of the Council establishing an Entry/Exit System (EES) to register entry and exit data and refusal of entry data of third country nationals crossing the external borders of the Member States of the European Union and determining the conditions for access to the EES for law enforcement purposes and amending Regulation (EC) No 767/2008 and Regulation (EU) No 1077/2011 (COM(2016)0194 C8-0135/2016 2016/0106(COD)) (Ordinary
legislative procedure: first reading) (http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-
//EP//TEXT+TA+P8-TA-2017-0411+0+DOC+XML+V0//EN; see also: European Parliament, Strengthening security
http://www.europarl.europa.eu/news/en/press- room/20171020IPR86543/strengthening-security-checks-at-europe-s-borders, accessed 26 October 2017.
⁴¹ United Nations Economic Commission for Europe, Trade Facilitation Implementation Guide, http://tfig.unece.org/index.html, accessed 26 October 2017.
⁴² World Customs Organization, Framework of Standards to Promote and Facilitate Global Trade (SAFE), June 2015.

generally include expedited clearance, including reduced documentary and physical checks, and benefits under Mutual Recognition Agreements (MRA) with other customs jurisdictions.

Both the UK and the Ireland have trusted trader s
Authorised Economic Operator programme, which has its current legal basis in Article 39 of the Union Customs Code (UCC)⁴³. The EU programme has three sub-classifications: AEO Customs Simplifications; AEO Security and safety; and, AEO Customs simplifications/Security and safety⁴⁴.

The UK and Ireland AEO programmes are currently underutilised. The UK currently has 604 AEO companies (no separate figures for NI) under all three of the EU AEO sub-classifications. Ireland has 139 AEO companies under all three sub-classifications. By comparison, Germany has 6,000 AEOs in all classifications, France 1,453 and Italy 1,238⁴⁵.

Through MRAs with other customs jurisdictions, companies authorized as compliant in one customs jurisdiction can be recognized as AEO in a second customs jurisdiction with reciprocal benefits for AEO companies. The EU currently has MRAs with Norway, Switzerland, Japan, Andorra, the US and China⁴⁶.

2. 
   Frequent cross-border travel
   

There are no internationally based standards or guidelines for countries to align with in the case where there is frequent cross-border travel. The frequent traveller programme between the US and Canada is covered in S

3. 
   Integrated border management
   

Integrated border management encompasses cooperation between border management agencies within a customs jurisdiction and between one customs jurisdiction and another⁴⁷, generally along a shared border.


In its 2010 Guidelines for Integrated Border Management in EC External Cooperation, the European Commission noted that
achieving the goal of having open, but controlled and secure borders, by enhancing the coordination and cooperation among all the relevant border authorities at national and
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Within a customs jurisdiction, integrated border management requires bringing together the range of agencies that are often represented at a border, including health, biosecurity, customs, immigration and other agencies. As in Finland, this can include having one or two agencies responsible for all or most of the border functions⁴⁹.This domestic coordination also includes data exchange between different agencies that supports integrated activities.

43 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (recast) (http://eur-lex.europa.eu/legal- ontent/EN/TXT/PDF/?uri=CELEX:32013R0952&rid=1

⁴⁴ European Commission, Authorised Economic Operators Guidelines, Directorate-General Taxation and Customs Union, 11 March 2016.
⁴⁵ European Commission AEO query page http://ec.europa.eu/taxation_customs/, accessed 13 October 2017.
⁴⁶ European Commission, Taxation and Customs Union, https://ec.europa.eu/taxation_customs/general- information-customs/customs-security/authorised-economic-operator-aeo/authorised-economic-operator- aeo_en#mutual, accessed 18 October 2017.
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Paper No.2, June 2009.
48
2010.
⁴⁹ -General
for External Policies, Study, 2017.

A fully integrated border between customs jurisdictions requires a legal and regulatory framework, harmonised procedures, exchange of data and information as well as joint infrastructure⁵⁰.

integrated border management is in place at the Sweden-Norway
border.

4. 
   Keeping the border open
   

In order to free up the border, a number of measures can be taken to ensure that as much government agency activity as possible is moved away from the border. These measures can form part of, for example, trusted trader programs, or be applied to most imports and exports.

A key step is allowing the release of goods prior to clearance by customs and other agencies. Based on pre-arrival information (or a pre-declaration with the minimum information required) goods can be released and a full declaration made within a defined time period after release.

Based on an account system, duties can be paid on a periodic basis and controlled based on audits. This system of deferred duty payments (which can also apply to VAT) eliminates the need to determine the correct amount of duties at the border. A system of monetary guarantees or security underpins deferred duty payments (see Section 2.4).

If inspections or controls are required, these can be conducted away from the border. This can be done either at a specified location (e.g. a customs warehouse away from the border) or at the importers place of business. For exports, any controls can be undertaken at the exporters place of business.

5. 
   Single Window
   

The World Customs Organization defines a single window

lodge standardized information, mainly electronic, with a single entry point to fulfil all import, export and transit related ⁵¹.

A single window allows businesses to electronically submit most or all of the standardized information required for importing and exporting through one portal. This greatly simplifies the process for importers and exporters who have often been required to communicate separately with different government agencies on imports and exports.

The most advanced single windows allow businesses to submit applications for those certificates, licenses and permits required for import and export as well as the submission of customs declarations. Single windows can also provide facilities for bank payment of duties and other fees.

The UK currently operates a National Maritime Single Window for the submission of pre- arrival data only⁵². Ireland does not operate a single window.

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⁵¹ World Customs Organization, Single Window Information Store, http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/single-window/single-window.aspx, accessed 20 October 2017.
⁵² Directive 2010/65/EU of the European Parliament and of the Council of 20 October 2010 on reporting formalities for ships arriving in and/or departing from ports of the Member States and repealing Directive 2002/6/EC (http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32010L0065).

6. 
   Gateway solution
   

The Gateway solution is a solution using existing infrastructure, like mobile networks, for Customs and Government related information messages to and from businesses involved in import and/or export. It was first tested by Swedish Customs for Authorized Economic Operators at the Sweden-Norway border in 2003 2005. It can also be used to follow vehicles in real time through GPS positioning.

7. 
   Green Corridor
   

The Green Corridor is a solution to speed up supply chains through a fast track approach for AEOs and which re-uses export data as the basis for border processing and imports throughout the supply chain. It was tested between Sweden, Finland and Russia for a number of years.

4.