03/12/2014 1

Electronic Customs Coordination Group

Item 16Reporting from the PG analysing the implementation feasibility of Obj 1&2 of the RM Strategy

Brussels, 3 December 2014

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1. Context EU Risk Management Strategy

Multiple filing inscribed in the UCC

Joint meetings ECCG/CCC-RM/CCC-FOR/CCC-DIH on 1/07/2014 and of meeting of TCG on 3/07/2014

=>Working document TAXUD(2014)2233525

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1. ContextCPG meeting May & July 2014

=> Need for further implementation (feasibility) analysis of approach [1-]2-3 linked to Obj 1&2 of the RM Strategy

=> Supported by a new Project Group

Call for interest to CPG in July 2014PG Kick-off on 11 September 2014

4

2. Mandate & role of the PG

Objective: Prepare a comprehensive analysis for the CPG Meeting of December 2014

to examine the feasibility of the implementation in terms of processes and requirements, organisational, technological, financial,…

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5

"PG supporting the analysis of the implementation feasibility for objectives 1 &2 of the Risk Management Strategy"

Working arrangements

Number of planned events Plenary meetings + subgroup meetings

(risk managament/customs business processes/IT) Use of PICS for e-collaborative edition of document From September till November 2014

Number and Profile of participants Final composition: 25 experts from 13 MS

Trade invited on ad hoc basis

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3. Meetings

11/09/2014 1st Plenary + 12/09 RM

Subgroup

24-25/09/2014 Subgroups

8-9/10/2014 2nd Plenary + Subgroups

29-30/10/2014 Subgroups + TCG half day

19/11/2014 3rd Plenary

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4. Activities

• Requirements definition (chapter 3) Risk Management Requirements defined Definition of e-screening Definition of ENS+ lifecycle

Functional Requirements defined + what is a new requirement + merger key per transport mode

Non functional Requirements defined

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ENS+ Lifecycle

The “ENS+ lifecycle” is a term for easy reference to thecomplex entry process starting with

•an EO submitting a complete or a partial ENS to Customs; then

•customs receiving, validating, processing, making the submitted data (ENS or partial ENS) available to other relevant Member States, performing collaboratively security and safety risk management, making available all the data that is being added to the (partial/complete) ENS such as risk results, decisions, control results, etc; and closing the process with

•customs indicating a final state variable to the actual case of the transaction and potential controls performed.

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Approaches and options confirmed and completed from an IT perspective

• Architecture definition (chapter 4) Functional blocks identified to build IT landscape SWOT analysis (volumetrics, roles, efficiency,

effectiveness, etc)

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Solution architecture options

3 Approches – 6 options

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How we did it?

11

Refinement

Six IT implementation

options

Business and functional requirements

CBA: 3 approaches

Functional Architecture (what we need to do?)

Application Architectures (how it will work?)

Technological Solutions (what technology can do that?)

Costs Planning

+ SWOT Analysis

+ Volumetric

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3 Approaches

• Approach 1: Peer-to-peer networking

• Approach 2: Common repository for ENS+ lifecycle support

• Approach 3: Adding a harmonised interface for trade

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Illustrative example of ENS Lifecycle

13

reception/validation

merge

arrival - status

presentation - status

control - results

reception/validation

RA - results

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Functional blocks

14

ENS+ Management Lifecycle & Services

Communication between MS

Communication with EOs

Risk Analysis

ScreeningRM Collaboration

RM11

RM10

RM6

RM5

FR10 FR1FR2

FR4

FR3

RM14

RM12

RM13

RM11

RM10

RM9

RM8

RM7

RM6

RM4

RM3

RM2

FR4

FR6

FR7

FR8

FR9

FR5 FR26

FR25

FR22

FR23

FR24

FR21

FR20

FR13

FR14

FR15

FR16

FR17

FR18

FR19

FR11

FR12

RM12

RM9

RM4

RM3

RM2

FR16

FR6

FR5

FR11

RM3

RM14RM8RM1

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Expected ENS per yearin million

Master PartialPostal 6,2 123,2 129,4

AirCargo

3,4 47,651

Express29 29

58Maritime 14,5 72,5

87Road 1Rail 0,5 Total 326,9

326.9 millions of ENS parts are expected from trade per year

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Approach 1 – 2 options

• Approach 1 – Option A: IT trader interfaces are to be operated by each and every MS. The MS architecture is fully decentralised without common IT components except CCN/CCN2 in order to streamline the exchange of data;

• Approach 1 – Option B: a technically optimised version of Approach 1 – Option A. It introduces a central referential index that would help to find the required information at the right place;

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Approach 1 – Option A

Person lodging pre-departure ENS-data (1)

Person lodging pre-arrival ENS-data (2)

Person lodging house bill ENS-data (3)

FCOE, might not be known (4)

FCOE, as today (5)

FCOE, as known by this person (6)

ENS

ENS

ENS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MSMS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

Nati

onal

In

terf

ace

Nati

onal

In

terf

ace

Nati

onal

In

terf

ace

Nationalapplications &

repositories

Nationalapplications &

repositories

Nationalapplications &

repositories

Peer to peer comm

unication

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A1A

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Approach 1 – Option B

Person lodging pre-departure ENS-data (1)

Person lodging pre-arrival ENS-data (2)

Person lodging house bill ENS-data (3)

FCOE, might not be known (4)

FCOE, as today (5)

FCOE, as known by this person (6)

ENS

ENS

ENS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MSMS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

MS

Nati

onal

In

terf

ace

Nati

onal

In

terf

ace

Nati

onal

In

terf

ace

Nationalapplications &

repositories

Nationalapplications &

repositories

Nationalapplications &

repositories

Central reference repository

Central communication

broker

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A1B

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Approach 2 – 1 option

• IT trader interfaces are to be operated by each and every MS.

• The ENS parts are filed and merged in a common place; they are available from there to all MS.

• A common repository containing complete ENS data provides the possibility of an effective and efficient implementation of different services such as ENS+ lifecycle services, Risk Management collaboration services and e-screening services. These services are consequently made available to all MS;

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Approach 2

Pre-loading data

House bill data

Forwarding RA results

Data available at newest status

Data available at newest status

EO1, 2

EO3

MS4

MS5

MS6

CommonRepository

Merges partial data and updates status dependent to procedural workflow

Natio

nal

Inte

rface

Common repository &

services

Central communication

broker

Natio

nal

Inte

rface

Natio

nal

Inte

rface

e-Screening

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A2

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3 Options for Approach 3

• Option A: Filing to a selected office Following legal rules, the EO file to a customs office which

subsequently pushes data to the responsible customs office of entry.

• Option B: Harmonised national interfaces The EO has to address the MS trader interface in function

of the FCOE or the presumed one.

• Option C: Central Trader Interface This option provides a central unique IT trader interface.

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Approach 3 - Option A: Filing to one MS

• An Economic Operator can lodge an ENS submission to any FCOE in the EU via the IT trader interface of the MS to which it is connected to following an assignment protocol;

• The receiving IT trader interface will route the messages to the FCOE or the presumed one.

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Approach 3 – Option A

Pre-loading data

Pre-arrival data

House bill data

Forwarding RA results

Data available at newest status

Data available at newest status

EO1, 2

EO3

MS4

MS5

MS6

CommonRepository

Merges partial data and updates status dependent to procedural workflow

Nati

onal

In

terf

ace

Common repository &

services

Central communication

broker

Nati

onal

In

terf

ace

Nati

onal

In

terf

ace

e-Screening

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A3A

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Approach 3 - Option B: Harmonised national interfaces

• The offered IT trader interfaces across all MS are fully harmonised from business, semantic and IT technical viewpoint;

• The Economic Operator has to address the IT trader interface of the MS in function of the FCOE or the presumed one.

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Approach 3 – Option B

EO1, 2

EO3

Forwarding data

Forwarding RA results

Data available at newest status

Data available at newest status

MS4

MS5

MS6

CommonRepository

Merges partial data and updates status dependent to procedural workflow

Harmonised Single Access Point Gateway

Harmonised Single Access Point Gateway

HarmonisedSingle Access Point Gateway

Preloading ENS-data

House billENS-data

Harmonised national interface

Common repository &

services

Central communication

broker

Harmonised national interface

Harmonised national interface

e-Screening

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A3B

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Approach 3 - Option C: Central Trader Interface

• This option provides a shared unique IT implementation of the trader interface. One single gateway for the IT communications between traders and customs.

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Approach 3 – Option C

EO1, 2

EO3

Single Access Point Gateway

CommonRepository

Merges partial data and updates status dependent to procedural workflow

MS4

MS5

MS6

Availability of data at newest status

Central Trader

Interface

Common repository &

services

Central communication

broker

e-Screening

e-Screening

e-Screening

e-Screening

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Functional IT Architecture – A3C

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Estimated costs

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While EU COM costs raise, MS costs significantly drop as of A2 and A3-C

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Costs by approaches MS vs COMM

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37

Recommendations to CPG

CPG endorsement requested for

• Approach 2 and set up a Common Repository for mandatory use by all Member States. • as an "add-on" to the Common Repository, the possibility of collaboration among interested Member States with the

support of the Commission to be applied for the development, implementation and operation of a Shared Trader Interface.

• as an “add on” to the Common Repository, the introduction of a shared functionality for e-screening.

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Options

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National Risk Analysis

National Trader

Interface

National Risk Analysis

National e-screening

National Risk Analysis

Shared Trader Interface

Trader Interface National National Shared Shared

e-screening National Shared Shared National

Common Repository & Services (mandatory)

National Trader

Interface

National Risk Analysis

National e-screening

1

Sharede-screening

Trader Trader Trader Trader

3

2

• The Common Repository will be a commonly shared service developed and technically operated by the Commission on the basis of commonly agreed business rules and IT compliance defined in close cooperation with the Member States.

• Operational responsabilities remain with MS.

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Recommendations to CPG

Legal implications

Concerning the ENS+ lifecycle

Concerning the implementation of the recommended option

Concerning data protection and data security

Statements on Resource and Critical dependencies

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2014 2015 2016

Preparation of CPG document

CPG:GO/NO GO

decision

Business Case & Vision

documentGO/NO GO

decision

ElaborationPhase

Solution operational

(first release)

Solution develo

ped

Common repository & services (EU Commission in the lead)

Project coordination (EU Commission in the lead)

ConstructionPhase

InceptionPhase

TransitionPhase

System Specifications

readyGO/NO GO decision

e-screening (“Opt-in Member States” leading committees)

Shared trader interface (“Opt-in Member States” leading committees)

Way forward

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•Thank you !

Annex slides

In Case of…

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ENS+ Lifecycle

The “ENS+ lifecycle” is a term for easy reference to thecomplex entry process starting with

•an EO submitting a complete or a partial ENS to Customs; then

•customs receiving, validating, processing, making the submitted data (ENS or partial ENS) available to other relevant Member States, performing collaboratively security and safety risk management, making available all the data that is being added to the (partial/complete) ENS such as risk results, decisions, control results, etc; and closing the process with

•customs indicating a final state variable to the actual case of the transaction and potential controls performed.

4403/12/2014

Illustrative example of ENS Lifecycle

45

reception/validation

merge

arrival - status

presentation - status

control - results

reception/validation

RA - results

03/12/2014