In May 2017, the CEFTA Joint Committee adopted the Additional Protocol No. 5 (AP5), which entered into force in April 2018. Article 3 of the AP5 on “General objective” requires CEFTA Parties to:

• Simplify inspections related to all clearance procedures and reduce formalities to the possible maximum extent;
  
• Exchange data between Customs authorities to the extent that each CEFTA Party’s respective regulations allow; and
  
• Mutually recognise the national Authorised Economic Operators’ Programmes in each CEFTA Party, provided that both the legislation and implementation of each AEO programme is fully in line with the relevant EU laws.
  

The AP5 goes hand in hand with the activities under theMulti-Annual Action Plan for a Regional Economic Area in the Western Balkans Six (MAP) and the Common Regional Market Action Plan 2025-2028 (CRM 2.0).

The AP5 seeks to facilitate trade and the exchange of electronic data among CEFTA Parties by streamlining Customs procedures, promoting mutual recognition of documents, and encouraging the use of electronic payment systems. The AP5 contains measures providing for:

• Simplification of inspections: Streamlining Customs inspections to reduce formalities and expedite clearance procedures for goods;
  
• Data exchange between Customs authorities: Facilitating the exchange of data to improve risk analysis and enhance the efficiency of Customs operations;
  
• Establishment and mutual recognition of AEO status: Recognising and accepting the AEO status of businesses across CEFTA Parties, which allows for reduced Customs controls and expedited processing;
  
• Use of electronic payment systems: Encouraging the adoption of electronic payment options for Customs duties and fees to streamline transactions;
  
• Acceptance of electronic and paper copies: Allowing the use of both electronic and paper copies of supporting documents for import and export processes;
  
• Regular reviews of formalities: Conducting periodic reviews of import, export, and transit formalities to ensure they remain efficient and relevant; and
  
• Coordination on international standards: Encouraging CEFTA Parties to align their practices with relevant international standards to facilitate smoother trade operations.

The SEED+ is a project to update the existing Systematic Exchange of Electronic Data (SEED) and it aims at facilitating trade and regional economic integration within the CEFTA region. It combines two key components:

• CEFTA TRACES NT: This system, based on the EU TRACES NT, enables the generation, processing, and sharing of phytosanitary, veterinary, and pharmaceutical certificates and entry documents. It also facilitates rapid information exchange on non-compliant consignments, similar to the EU’s RASFF and EUROPHYT systems; and
  
• Customs SEED+: This upgraded version of the existing SEED system establishes additional data exchange links, improves Customs modules, and enhances regional Customs risk management.
  

Both systems are designed to be fully interoperable with each other and with EU systems and standards, ensuring seamless data exchange and efficient border management. This interoperability will reduce administrative burdens, streamline processes, and ultimately facilitate trade within the CEFTA region.

On 9 October 2024, the CEFTA Joint Committee adopted a Decision on the Establishment of an Electronic System to Facilitate Risk-management for Trade in Goods, which establishes an electronic system to enhance risk management for trade in goods among CEFTA Parties.

The key elements of this Decision are the following:

• Strengthening and improving risk analysis and security-related controls: The decision promotes the development of CEFTA Risk Profiles (CRPs) that allow CEFTA Parties to identify and target potentially high-risk consignments, means of transport, or passengers, thereby enhancing the effectiveness of Customs controls and reducing the likelihood of illicit activities;
  
• Establishing a common framework for risk management and priority control areas: By creating a standardised approach to risk management, CEFTA Parties can align their Customs procedures, ensuring consistency in the assessment of risks related to revenue collection, public health, environmental protection, and the fight against terrorism, which ultimately streamlines trade processes;
  
• Facilitating the exchange of relevant Customs risk profiles among CEFTA Parties: The decision mandates the sharing of data from Inspection Reports and CRPs through the SEED system, fostering collaboration and information exchange among CEFTA Parties; and
  
• Implementation of CEFTA Rapid Customs Alerts: The establishment of a system for issuing Rapid Customs Alerts allows for the immediate communication of newly identified risks that require urgent action. This rapid response mechanism enables CEFTA Parties to take timely measures to mitigate risks, ensuring the safety and security of trade while minimizing disruptions.

The CEFTA Authorised Economic Operators (AEOs) programme is based on Article 25 of the AP5 and Annex III, and it aims at enhancing supply chain security and facilitating legitimate trade by recognising trusted businesses. Companies granted the AEO status have various benefits, including:

• Reduced Customs controls;
  
• Priority inspections; and
  
• Simplified procedures.
  

Annex III of the AP5 regulates the status of AEO, notably:

• The criteria for granting the AEO status;
  
• The benefits that AEO enjoy; and
  
• The rules for the suspension, revocation, rejection and annulment of the AEO status.
  

In this regard, the AEO status is the official recognition granted to compliant economic operators, while the AEO programme is the comprehensive framework that defines the criteria, processes, and benefits associated with obtaining and maintaining that status. A list of AEOs is available here.

The CEFTA Subcommittee on Customs and Rules of Origin has focused on the implementation of the AEO programme in the region, including the issue of mutual recognition of AEO programmes. For the latter, the CEFTA Joint Committee has adopted Decision No.1/2019 on the Establishing the validation procedure for the mutual recognition of CEFTA Parties’ national Authorised Economic Operators’ Programmes with regard to the safety and security (AEOS).

This decision sets out a validation procedure for the mutual recognition of CEFTA Parties’ AEO programmes. Furthermore, CEFTA Joint Committee Decision No.2/2020 on Establishing a common logo for CEFTA Parties’ Authorised Economic Operators established a common logo for AEOs within CEFTA, used to identify AEOs whose programmes have been mutually recognised by CEFTA Parties, facilitating trade and Customs procedures within the region for them.

The Green Corridors/ Green Lanes were established at the dawn of the COVID-19 outbreak in order to prevent shortages of essential goods and medical equipment. A year after launching the initiative, the Green Corridors/Lanes has been extended to all road intra-CEFTA BCPs/CCPs and three rail BCPs/CCPs. The traders carrying essential goods have priority passage throughout the Western Balkans. The extended concept contributes to reducing waiting times at the BCPs/CCPs, and ultimately reducing the transport and trade costs for all businesses. CEFTA provided electronic exchange of pre-arrival information through the CEFTA SEED. The extension of the Green Corridors/Green Lanes to the crossings with the neighbouring EU Member States is an ongoing activity.

More information is available here.