EU - Customs risk management and security of supply chain 

January 8:   The European Commission today released a communication to the European Parliament, Council, and Economic and Social Committee concerning its findings relating to customs risk management and security of the supply chain.

The EC report [PDF 232 KB] identifies gaps under the current system that require “urgent action” concerning data quality, supply chain modeling, and certain aspects of the methodology applied.


  • The foundation for data quality and the role of the economic operators is the advance cargo information submitted electronically with respect to goods entering and exiting the EU. Certain inputs currently do not meet minimum requirements or are of low quality.
  • Securing and safeguarding the supply chain requires high levels of cooperation between customs and the trading community. The EU’s Authorised Economic Operator (AEO) program has more than 11,000 certificates in use (as of July 2012); is formally recognized by major trading partners; and is closely monitored at the EU level. However, because there are similar initiatives in other public policy areas that are not linked to the AEO program, an operator can be required to satisfy the same criteria twice by two different administrations.
  • Variances in the levels of risk analysis result in uneven implementation. For example, the common risk criteria are not fully implemented in all EU Member States, and thus cannot be properly monitored and evaluated for effectiveness at the EU level.

The EC report sets out approaches for closer engagement with economic operators in order to attain the desired standards of data for risk analysis, facilitate the efficient movement of legitimate trade, and better combat illicit trade. Also, it is proposed that a more systematic exchange of risk information and coordination between customs and other authorities or agencies and closer international cooperation will reinforce the security and integrity of the supply chain.



For more information, contact a professional with KPMG’s Trade & Customs practice:


Douglas Zuvich

(312) 665-1022


Andrew Siciliano

(631) 425-6057


John L. McLoughlin

(267) 256-2614


Todd R. Smith

(949) 885-5617


Luis A. Abad

(212) 954-3094


Amie Ahanchian

(202) 533-3247


Or your local KPMG Trade & Customs professional.




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

Other TaxNewsFlash publications

TaxNewsFlash-Trade & Customs by year