The first policy option defined within the customs-export problem area is the systematic cross-check of data between the customs export declarations and the excise declarations (e-AD). The main goal for introducing such a solution is reducing the scale of fraud, which might be facilitated by manual and, likely, selective cross- checks between the two documents.
Two options are under consideration. The first is the cross-check at the message header level, which would require excise ARC and SEED numbers to be included in the export declaration and to cross-check them on a per-export declaration basis. The second type of cross-check under consideration is more comprehensive, and, in addition to the simpler cross-check, would also verify the goods description in the export declaration and excise e-AD are consistent.
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If the cross-check detects a mismatch, then the export declarant will be required to take corrective actions (e.g. amend the export declaration). Otherwise, the export release will be refused or excise duty will be claimed by MS excise authorities.
According to the assumptions of this policy option, derogations will be granted to MS with low volumes of export of excise goods, so that, for example, Malta and Cyprus will be allowed to continue performing their cross-checks manually.
4.1.1.1Automated Data Cross-Check at Message Header Level (Documents)
The automated data cross-check at the message header level has already been defined in the BPMs developed by the Commission. The name of the process in AES documentation is L4-EXP-01-01-01-01: Handle e-AD Request (see the visualisation of the process in Annex F).
When during the process acceptance of the export declaration the system identifies that the declaration contains one or more ARCs at the goods item level, the L4 process Handle e-AD Request is initiated. Consequently, the AES requests the e-AD in electronic format (nIE532) from the EMCS of the MS of export. As goods declared in one export declaration can refer to several e-ADs, a request for all e-ADs must be sent to the EMCS in either one or several messages.
After the request, one of the following cases must be fulfilled:
The AES at the customs office of export receives an e-AD from the EMCS of the MS of export in an electronic format (IE801). Additionally, the AES records the e-AD, which was received from the EMCS.
The AES at the customs office of export receives the rejection of the e-AD request from the EMCS of the MS of export in an electronic format (IE906). The AES records the e-AD, which was received from the EMCS. The AES informs the trader about the rejection of the customs declaration, indicating the reasons for the rejection (IE516).
The final situation after running the process is:
• The e-AD request is accepted by the EMCS of the MS of export.
• The e-AD request is rejected by the EMCS of the MS of export. In addition, the trader is informed of the export declaration rejection due to the e-AD rejection. 4.1.1.2Automated Data Cross-Check at Message Body Level (Goods Description)
The recording and validation of the SEED numbers of EOs with a full data cross-check of entries in the export declaration and e-AD requires two additional processes at the L4 level. These are L4-EXP-01-01-01-03: Cross-Check e-AD and L4-EXP-01-01-01 Acceptance of Export Declaration (see the visualisation of these processes in Annex F). When the export declaration is accepted in the AES (namely, when a movement reference number (MRN) is allocated) and the declared goods are identified under excise, the duty suspension arrangement in Acceptance of Export Declaration the Cross-Check e-AD process initiates. Within this procedure, the AES cross-checks the data of the customs declaration plus the e-AD and records the result of the cross- check. As a result, the AES records the cross-check results which will be used during risk analysis and the control decision later on in the Acceptance of Export Declaration procedure.
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The process of Acceptance of Export Declaration starts when the declaration data is submitted to the office of export. Next, the validation of the export declaration is performed by the AES. If the declaration is invalid, the AES rejects the declaration and notifies the exporter that the declaration is rejected, giving the reason for the rejection. If the declaration is valid, the AES automatically records the export declaration and the validation results.
Consequently:
• If the AES receives the export declaration without the goods being presented (Additional Declaration Type=D, E, F), the state of the movement will be set to Registered and Waiting for Presentation of Goods.
• If the AES receives the export declaration and goods are presented, the state of the movement will be set to Registered and Goods Presented.
After the Record of Export Declaration, the AES performs the necessary checks to ensure that the provided location reference number (LRN) from the declarant is unique and checks the validity of the declared authorisation.
If authorisations are invalid, the AES will inform the declarant of the export declaration rejection (via IE516). The process ends when the export declaration is rejected. The main process L4-EXP-01-01-Customs Formalities at Office of Export-Acceptance and Controls continues.
If authorisations are valid, the AES will continue with identifying if the customs declaration contains one or more ARC at the goods item level to determine if the declared goods are under an excise duty suspension arrangement.
In the case of continuation, if the export declaration contains ARCs, the process Handle e-AD Request will be initiated. If the e-AD request is accepted by the EMCS and a valid e-AD is provided, the e-AD will be recorded and the main process L4-EXP- 01-01-Customs Formalities at Office of Export-Acceptance and Controls continues. If the e-AD request is not accepted by the EMCS of the MS of export, the AES will record the rejection (via IE906) and inform the trader about the rejection. Then, the export declaration is rejected and the main process L4-EXP-01-01-Customs Formalities at Office of Export-Acceptance and Controls ends.
In the cases when L4-EXP-01-01-Customs Formalities at Office of Export-Acceptance and Controls continues, the AES checks if the goods have been presented at the office of export.
If the goods are presented, the AES will accept the export declaration and the movement state will be set to Accepted. The AES generates an MRN for the movement and the trader is notified (IE528) of the export declaration acceptance and the allocation of the MRN.
Unless the goods are presented, two of the following events could occur:
• The AES will receive the presentation notification (nIE511) and, if it was valid, the export presentation notification will be recorded and the process L4-EXP- 01-01-Customs Formalities at Office of Export-Acceptance and Controls would continue. Next, the state of the movement is set to Accepted. The AES
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generates an MRN for the movement and the trader is notified (IE528) of the export declaration acceptance and the allocation of the MRN.
• The timer for the presentation notification expires and the export declaration is rejected.
After the trader is informed about the acceptance, the AES interacts with the national risk analysis systems of the MS to request a risk analysis. When the risk analysis results are received, the AES records them and the process L4-EXP-01-01-Customs Formalities at Office of Export-Acceptance and Controls ends. In cases where the declaration contains an ARC in the goods item level, the process Cross-Check e-AD will be initiated.
The final situation after running the procedure is:
• If the declaration is not valid, it will be rejected and the trader will be informed about the situation.
• If the declaration is valid, it will be accepted, an MRN will be generated and allocated. The trader is notified about the acceptance of the declaration. As a result, the state of the movement is set to Accepted.