Committee Reports > List of Committees > Joint > 1992 > Committee on the Secondary Legislation of the European Communities (6th Committee) > Report No. 14 - Commission Proposals on the Harmonisation of the Structure and the Approximation of Rates of Excise

ANNEX:

CUSTOMS CLEARANCE AGENTS AND THE ABOLITION OF BORDER CONTROLS

Abolition of Frontier Controls: Customs Clearance Agents

A.1The abolition of frontier controls is implied by Article 13 of the Single European Act which added 8(a) to the Treaty. The abolition of frontier controls, and its consequences, is not therefore directly within the terms of reference of this report dealing with legislation relating to excises. However, the Joint Committee is concerned with the immediate employment effects of the abolition of frontier controls and following representations from some of the interests concerned has added this Annexe to the report on excises.

A.2The abolition of frontier controls on goods moving between Ireland other member states of the European Community means that there will be no need for the services of customs agents in connection with intra-Community trade. The implications of this for customs clearance agents was examined in a report commissioned by the European Commission and carried out in Ireland by Deloitte & Touche consultants. According to the consultants there are 236 firms employing 5,200 persons providing customs clearance services in Ireland. The consultants estimate that over a 1,000 of these will be made redundant after 1 January. The consultans emphasise that many of these are ill-equipped to move to alternative employment by virtue of age and educational qualifications. In addition, those employed in the border area near Dundalk and the seaport of Rosslare are in areas of high unemployment where even young and well qualified persons would experience difficulty finding employment.

A.3The Border Clearing Agents Association and the Association of Customs Clearance Agents of Rosslare argue that little specific action appears to be contemplated by the authorities to counter the emerging problem. By contrast they note that in previous years the steel industry, and at present the agricultural industry, have or are benefitting from specific programmes of assistance in the context of a restructuring brought about by the effects of Community policies.

A.4The Joint Committee is therefore concerned about the uncertain prospects facing the people employed in customs clearance businesses. It notes with interest the content of a recent Communication by the Commission to the Council and the Parliament entitled “Customs Agents: Adapting the Profession to the Advent of the Single Market” (Sec(92) 887 final) which was published recently. This Communication recommended that the European Community should provide special funding to the appropriate authorities in the member states in order to equip affected persons to find alternative employment. This has been done and a sum of ECU 30 million has been set aside to provide for the needs of customs clearance agents.

A.5The Joint Committee therefore recommends that development agencies such as the IDA, FAS and An Bord Trachtala should access Community funds in order to enable them to implement a strategy of exceptional measures for finding alternative employment for these workers when border controls are removed.