EU And China Initial Customs Cooperation Agreement

by Ulrika Lomas, Tax-News.com, Brussels

10 May 2004

European Union Taxation Commissioner Frits Bolkestein, and Commissioner of Chinese Customs Mu Xinsheng, signed a customs cooperation agreement last Thursday that aims to promote trade and increase security between the two trading partners.

"This agreement will be an important step forward as it will facilitate trade and the fight against fraud and counterfeiting,” observed Bolkestein, adding:

“It will also constitute a strong incentive to promote the most advanced customs standards and, more generally, customs co-operation between the EU and other Asian countries."

The agreement will provide a framework for increased cooperation between the parties, with a view to simplifying customs procedures and facilitating trade in accordance with international customs standards.

It will also set up a mechanism for mutual administrative assistance with regard to exchanging information and carrying out inquiries. This is designed to combat fraud against the two sides' customs legislation.

China is the EU's second largest trading partner, with bilateral trade in 2003 exceeding €135 billion, which represents 6.9% of the EU's trade with the rest of the world.

This agreement is very similar to other agreements concluded by the EU with its major trading partners such as the United States, Canada, Korea, Hong Kong and India.

The formal conclusion of the agreement on behalf of the Community, expected during the second half of 2004, requires the adoption of a Decision by the EU's Council of Ministers following a proposal from the Commission.

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