Thread by @DerrickBerthel1

1/Thread I have been asked to clarify how @HansMaessen oral evidence to Parliament proves once and for all that, to quote Hans Maessen himself, a hard border on the island of Ireland “is a fictitious problem” data.parliament.uk/writtenevidenc…

2/To recap. Maessen told the NI Affairs Cmttee there was no need for a hard border btwn ROI/NI under any circumstances. That the solution already exists, does not require new technology but can be “solved” simply through existing customs admin systems the UK and EU27 already use.

3/When asked if possible to have no infrastructure at the border?
“Yes. You do not need a bespoke system, it is there.. in the UK, Ireland, in all member states...It is the transit system, & the import & export declaration systems…no border infrastructure necessary on NI border”

4/When asked: Do we need a backstop?
“To give a very clear answer, no. There is no need for a backstop…It is all in the Union Customs Code...no cherry picking...no new systems or new laws. you change the way HMRC operates... you do not go to customs; customs comes to you.”

6/Maessen was very clear, by simply altering the way HMRC organises its Customs Officers, using existing administrative systems and with no new technology - there is no need for a hard border on the island of Ireland even if the UK should leave the EU under a WTO No Deal Brexit.

7/Does this exist now?“Netherlands doesn't have customs office anymore; it is all virtual. Customs comes to you. Swiss have hybrid system. You can go to a border..historical development, but they support you if you go inland and make the declaration somewhere away from the border

8/Maessen reminds us that in the “real world” companies sell product to customers globally. Supply meets demand. Companies from ROW are following this same process selling into the EU now. So, forgive me if what I am about to say is a bit basic but this is how it works:

9/Bald Eagle Inc. sells stetsons. Not a regular exporter to the EU it isn't registered as an Authorised Economic Operator (AEO) and have its own internal staff specialised in selling its goods across multiple customs territories globally.

10/AEO status is an internationally recognised quality mark showing your role in the international supply chain is secure, customs controls efficient and you meet EU standards.
gov.uk/guidance/autho…

11/Bald Eagle hire an AEO established in the territory of an EU member state. This AEO will now take complete responsibility for the import of Bald Eagles goods from the USA to the Netherlands.

12/The AEO first makes an export declaration in the EU country they wish to export to (Netherlands) sending all the data to Dutch customs to ensure Bald Eagle is eligible to export that product there.

13/Assuming the Dutch Customs system agrees (an automated risk-based check) these goods become “customs goods”, which, to quote Maessen, means they are under” customs administrative surveillance”.

14/The AEO now creates a transit declaration. This essentially allows Customs to monitor the goods as they move from USA to the Netherlands all under customs administrative surveillance. This is important because it is the company who made this declaration – the AEO - who is..

15/..liable for these goods should they end up “lost” or in a different market. Liable for their value, liable for the taxes & duty that needs to be paid. But also, reputationally liable. An AEO who keeps losing goods or fails to declare properly or not pays their taxes/duties..

16/..promptly will be stripped of their AEO status and be unable to trade across borders.
ec.europa.eu/taxation_custo…

17/Once goods arrive in Holland the AEO will make an import declaration & the system will calculate all the taxes that need to be paid. The system will also make a risk assessment. How trusted is the exporter and importer? Are the type of goods high or low risk for smuggling etc.

18/If the system flags up a high risk then the goods can be checked by customs officers. If no risk then once the taxes & duties are paid (or added to accounts to be settled on a net monthly or quarterly basis) then the goods leave customs administrative surveillance.

19/That is it. That is the process.
So, when UK leaves EU SM & CU & Bowler Hat Ltd wishes to sell into the EU27, it will have to follow the same process as Bald Eagle Inc. Similarly, when Beret SARL wishes to sell to the UK it will have to appoint an AEO established in the UK.

20/Ignoring for a moment the issue of tariffs - this is thus the extra cost of a UK company selling to the EU27 from outside the EU single market and customs union.
How much does this cost?

21/Maessen “Standard €25 for export declaration, €25 for transit, €50 for import. Total is €100..if you come every week the price go down, every day, we can automate it, 3 x a day, you do it yourself, you do not need a broker anymore as too expensive. That is way it works.”

22/What about SM regulatory checks? Well for the majority of goods (c.95%) the manufacturer assumes responsibility for deciding if they meet EU standards and unilaterally applies the CE kite mark. This is an excellent piece on the subject from @paulrey99
euquestion.blogspot.com/2017/10/leavin…

23/EU relies on “intelligence” based systems to decide if checks are necessary. eg if dolls have been found to contain glass, goods from that supplier will be flagged up on the system to be checked. But these checks do not have to take place at the border. Customs can go to them.

24/ Ahh my Remainer friends exclaim. But that’s why Maessen’s plans cannot work because The Netherlands is INSIDE the EU and for it to work you “need EU databases and EU Systems which ... erm .. we will no access too when we Brexit”

25/The EU has just confirmed the UK will remain in the common transit convention after Brexit and hence have use of the TRANSIT system.
gov.uk/government/new…
ec.europa.eu/taxation_custo…

26/Thus Maessen’s customs plan of using existing customs administration systems but simply changing the way HMRC operates can and will work not only on the border on the island of Ireland but at all border points between the UK & the EU & indeed the ROW.