EU Commission beefs up supply chain security

The Communication on Customs Risk Management and the Security of the Supply Chain sets out a strategy to enable customs to better tackle risks associated with goods being traded in international supply chains.

It will involve more rational use of resources, better quality and availability of trade data, and deeper partnership with trade and international partners. 

External trade out of the EU has grown by around 50% between 2004 and 2010 and while much of this is legal, the World Economic Forum has estimated that illicit trade stands at around 10% of the global economy.

The current set-up was seen as inadequate to deal fully with these risks and so the European Commission has proposed a number of actions going forward to beef up supply chain security. These proposals include:

–          Traders should make quality data available at the right time, in the right place for effective risk management;

–          Deeper engagement with companies moving goods across borders;

–          Ensuring homogeneous implementation of risk management throughout the external EU borders; considering the creation of a risk management capacity at EU level to complement Member State efforts;

–          More structured and systematic cooperation between customs and other authorities;

–          Increased international cooperation with the EU’s main trading partners.

Commenting, Algirdas Šemeta, commissioner for taxation, customs union, anti-fraud and audit, said: “Security is a top priority for EU customs. They have to remain Europe’s leading authority to stop dangerous goods from crossing EU borders and keeping European citizens safe. However, the nature of security threats and risks has become more complex in recent years, which is why today I am recommending to Member States new ways forward to better deal with customs risks in future.”

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