“Simplify Customs Procedures and Strengthen Germany as a Business Location“

Mr. Lemke, how are the effects of the Corona pandemic still having an impact?

Especially at the beginning of the pandemic, companies were confronted with previously unforeseen problems. But even almost two years after the outbreak of the Corona pandemic, the effects are still being keenly felt. Internationally interconnected supply chains are still under massive pressure and supply bottlenecks are dampening economic recovery. The pandemic has also reinforced tendencies toward de-globalization and increased the international trend toward protectionism. Without international cooperation and division of labor, however, we will not be able to overcome this global crisis in the long term. The pandemic has also revealed that there are clear deficits in administration in particular, for example in terms of digitalization or the reduction of bureaucracy, which could provide simplifications for economic operators.

How could customs procedures be simplified through digitalization and the reduction of bureaucracy?

Digitalization and the reduction of bureaucracy offer enormous potential for simplifying customs procedures, from which not only economic operators can benefit - it can also bring significant benefits to customs authorities. That is why we as German industry believe that digitalization of customs procedures must be implemented consistently at all levels. In a position paper, we recently set out the demands of German industry on digitalization and reduction of bureaucracy in customs procedures and highlighted the simplifications that could be made for companies and authorities.

Beyond that, what are the opportunities for further simplification?

In order to strengthen the EU as a location and relieve the burden on domestic industry, customs procedures should be simplified as much as possible. After all, beyond digitalization and reduction of bureaucracy, there are a number of other ways to simplify customs procedures, for example for Authorized Economic Operators (AEOs). Due to complex authorization procedures and regular controls, AEOs generally prove to be trustworthy and reliable economic operators. Therefore, the status should be accompanied by noticeable simplifications. These include the possibility of EU- and Germany-wide centralized clearance for imports and exports or self-assessment for recurring business transactions and standard processes.

There is also potential for simplification in risk analysis: Process-based controls rather than transaction-based controls could create more effective risk management with more targeted controls. This is where digitalization comes into play again, creating the opportunity for more efficient risk analysis. This can lead to improvements in controls, which can ease the burden on authorities and economic operators.

What other topics will the working group be focusing on in the coming years?

In addition to the negotiations and implementation of new European Free Trade Agreements (FTAs), the working group also focuses on the use of existing FTAs. A particular focus here is on the rules of origin, which determine whether a good is eligible for preferential tariffs. Since they are very complex and differ from agreement to agreement, they often represent a stumbling block in the use of preferential tariffs granted in FTAs.

Even before the Corona pandemic, protectionist tendencies were increasingly evident, especially in the increasing utilization of trade defense instruments. What needs to be done to protect and support export-oriented German industry?

In Germany, around 28 percent of jobs depend directly or indirectly on exports, and in the manufacturing industry the figure is even higher at 56 percent. That is why open markets and rules-based global trade are indispensable for German industry. It is therefore imperative that the German government and the European Commission strengthen the multilateral trading system and advocate fair competition conditions. In order to establish a level playing field, the EU needs an effective and balanced toolbox that can ensure a level playing field in global trade in the interests of European exports and imports and that is in line with the changing conditions in international trade.

In recent years, the increasing global utilization of trade defense instruments has become increasingly evident. They are also an important instrument for the EU to protect European producers from unfair competition from abroad. However, it must always be ensured that their use complies with the rules of the World Trade Organization (WTO) and that they are only applied if the specified conditions are met, and they are not misused for protectionist purposes.

Mr. Lemke, thank you very much for the interview.