New EU code will cut red tape for exporters

A decision to cut red tape for exporters and simplify the rules governing customs operations throughout Europe has been welcomed by Minister for Enterprise, Trade and Employment Micheál Martin.

The decision was taken yesterday at a meeting of the Council of Ministers in Luxembourg, which was attended by Mr Martin. "This decision by the Council of Ministers is very significant for Irish companies which export to other EU markets and moves us closer to the day when firms will be able to conduct 'paperless trade' within the union," he said.

The new set of rules, known as the Community Customs Code, means that Irish exporters will no longer have to engage customs agents in the country to which they are exporting. The code is expected to become law by early next year.

Mr Martin said it was a very important move as 64 per cent of Irish exports went to the EU. The change would bring immediate benefits and cut costs for Irish exporters, he said.

In addition to modernising the 15-year-old customs code, the ministers agreed to establish a paper-free electronic environment for customs within the EU. This will help companies to increase their competitiveness by reducing compliance costs.

Member-states are now required to develop compatible IT systems, provide for exchanges of information and enable EU-wide electronic risk analysis.

"As a Government, we are determined to reduce the burden of red tape for Irish firms both at national and EU level. The reduction of the cost of bureaucracy was one of the key recommendations of the Small Business Forum and it is important that it is acted upon," Mr Martin said.

"In Budget 2007 we took steps at national level to reduce the burden on companies in terms of dealings with the Revenue Commissioners. Now we have taken another concrete step towards further reducing the burden at EU level."