SASP will bring substantial facilitation
Alfred Hiebl sen, Managing Director MIC Customs Solutions, Linz Austria
"Many companies aim for the 'Single Authorization for Simplified Procedures' for some time. Now, the EU recommendation is achieved. SASP (Single Authorization for Simplified Procedures) brings significant facilitation for the economy since the local and national responsibilities of the concerned customs administrations no longer pose a limitation and customs formalities are substantially reduced."
— Alfred Hiebl, Managing Director MIC Customs Solutions —
What is SASP?
The “Single Authorization for Simplified Procedures”, which has it’s legal basis in the newly introduced Article 1 (13) of the customs code executive order (ZK-DVO), is a measure to facilitate trade that enables an economic operator to handle customs processes in their country of residence - regardless of where (in the EU) the goods are located at the time of release.
With one EU Member State acting in a Supervisory capacity, the procedure allows simplified declarations, local customs procedures, customs procedures with economic impact, End Use or every combination of these procedures to be handled.
The result is that the procedure offers significant advantages, for the customs authorities, for industry and for the economy.
"A paradigm shift has begun. The customs officer in uniform reduces his physical presence and focuses activities on the Internet. Electronic messaging replaces written documents with some exceptions. The idea of a Single Customs Clearance in Europe benefits from this development. Previous EU activities make a 'Single Authorization' in Europe possible."
The Benefits Companies engaged in trade with EU member states will be entitled to numerous benefits under the 'Single Authorization':
- There is only one location for all customs procedures among the authorized countries.
- Customs expertise can be concentrated in one location.
- Participants will be allowed to determine which customs authority/port they interact with for the release of all goods, decisions and documentation.
- The customs transactions are settled in national language.
- One technical environment is enough, which allows for only one interface between the company and the authorities.
- All parts have to be classified only once.
- The handling of pre-declarations is simplified essentially (e.g. 10 + 2 in the USA).
- Potential savings through the elimination of the NCTS procedure.
- Settlement of economic customs procedures on location of the Single Authorization.
- The documentation for INF procedures is cancelled. Pooling of staff resources and expertise.
- Eliminating the need to employ customs officers or agents in individual EU Member States.
- Maintenance of a single database, in the authorized country, which could be reviewed by a single customs office.
First, it should be noted that SASP is only available in member countries which have signed the relevant Administration Agreement.
The second aspect is for each participant to meet the basic conditions and criteria similar to the AEO status. The requirements include a qualified internal organization with proper accounting, financial solvency and customs compliance.
An AEO certification is not mandatory, but useful and recommended for the simplified procedure application.
As a rule, a self-assessment is performed within the company and contact is made with the customs authority before the SASP application, where the program and it’s benefits are outlined.
After the SASP application by the company, the customs authority checks the validity of the application and the criteria - analogous to the AEO certification. Next, is a consultation process between the authorities of the specific member states that will be party to the SASP (authorizing, monitoring and the participating Member States).
In the final step, the approval or rejection is issued.
After the physical landing of goods, the company requests the simplified customs declaration or the clearance notification at the respective customs office of the participating country. This process is usually handled electronically and only possible on paper until January 1, 2011. The participating Member State checks the application or clearance notification based on the results of the risk analysis and the control plan.
After the goods release by the participating Member State, the declaration and any check results are transmitted to the customs authority of the authorizing Member State. A supplementary customs declaration is then filed by the company in the authorizing Member State.
After the successful check of the supplementary customs declaration a duty notification is issued. The customs authorities in the participating Member State are informed about the supplementary declaration and about the duty notification for the calculation of the value added tax. The statistics message has to be transmitted directly to the statistical authorities of the participating Member State.
In addition to a centralization of customs clearance, in the companies, the use of SASP will also require an increase in the networking of customs administrations of the Member States, so that necessary information can be exchanged on time. Therefore, the expansion of the electronic procedures (AIS - Automated import system and AES - Automated Export System) will be taken into account.
With the creation of the legal basis for SASP, the internal trans-border simplified procedure could be placed on a solid legal foundation. SASP can be viewed as an essential step into the future with regard to the modernized Customs Code with the objective of paving the way for the centralized customs clearance and iron out expected problems due to different national conditions.
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