From the birth of community transit to PASSAR
The creation of the EEC
The history of community transit begins with the creation of the European Economic Community, one of the precursors to the current European Union. The EEC was established in 1957 with the Treaty of Rome, signed by the first member countries: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands.
One of the main goals of the European Economic Community (EEC) was to establish a common market where goods could move freely among member countries, unimpeded by customs or trade barriers. To achieve this objective, community transit emerged as a vital tool. Community transit allowed goods to traverse through the customs territory of different member states without the need to pay customs duties or undergo extensive border formalities. By facilitating the smooth movement of goods, community transit played a crucial role in realizing the vision of a seamless and integrated economic system within the EEC.
The first community transit
Community transit is a customs regime that allows goods to cross a customs territory without being subject to the payment of customs duties and without having to fulfil all customs formalities at the border. Goods are only subject to customs duties at the time of their final importation into the destination country.
In 1968, the inaugural community transit document known as the T1 was introduced. Back then, it was a paper document created in multiple copies and completed using a typewriter. This document underwent scrutiny and received customs stamps from the issuing customs authorities. To guarantee the integrity of the goods during transportation, vehicles were sealed to prevent tampering. The T1 served as a crucial record, ensuring that goods could move through customs territories without immediate payment of customs duties and allowing for their eventual assessment upon importation into the destination country. The introduction of the T1 marked an important milestone in streamlining and securing community transit operations.
NCTS arrives
In 1987, the computerized transit system (NCTS) was implemented, revolutionizing the management and control of transit operations. The introduction of NCTS brought significant advancements, notably in the efficiency and speed of operations. It replaced the conventional paper-based procedures with electronic messages, enabling seamless communication between customs authorities, transporters, and traders. The use of electronic messages facilitated quick and accurate data exchange, reducing paperwork and administrative burdens.
NCTS also introduced real-time tracking capabilities for goods in transit. With this system, customs authorities could monitor the movement of goods, ensuring transparency and enhancing security. This feature proved invaluable in identifying high-risk shipments, enabling customs officials to allocate resources and conduct targeted inspections. By focusing on potential risks, NCTS allowed for more effective customs controls and the prevention of illicit activities such as smuggling and fraud.
Overall, the implementation of NCTS marked a significant leap forward in the efficiency, accuracy, and security of transit operations. Its introduction revolutionized the customs landscape by embracing modern technologies and establishing a more streamlined and effective process for the movement of goods across borders.
Phase 5 and PASSAR
In the provided context, “Passar” refers to the new system for goods traffic implemented by UDSC (Customs and Excise Office). By the end of 2026, all customs processes and tax collections will be simplified, harmonized as much as possible, and fully digitized through the Passar system. According to Fredy Weissenbrunner, the head of Passar at UDSC, Passar and its peripheral systems expedite and enhance the goods process, including the crossing of borders. The digitalization in the customs domain allows freight forwarders to reduce paperwork and accelerate procedures, as confirmed by Mario Caccivio, the head of the Customs Commission at SPEDLOGSWISS.
The implementation of Passar occurs in multiple phases. The first release, Passar 1.0, was scheduled for June 1, 2023, focusing on transit and exports. During the initial phase, both the new and old systems will run in parallel to allow stakeholders sufficient time to adapt to the change. Passar 1.0 can be considered a national pilot project, aiming to gather experiences from the industry and integrate the lessons learned into Passar’s further development. According to Fredy Weissenbrunner, other digital solutions such as the Activ app have demonstrated significant process acceleration at the border through automatic activation of goods declarations, as observed in pilot projects like the one in Ticino. These digital solutions benefit not only the economy and customs but also the general population and the environment.
In the upcoming article, we will delve into the distinctions between NCTS and PASSAR.
Additionally, we will explore the investments and implementation strategies that Hub&Logistics must undertake to ensure a successful transition between these systems.
Stay tuned for an interesting analysis of the differences, investments, and implementations involved in this transition.
… to be continued
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