EU Regulation 2020/1056 of 07/15/2020

Objective: to demystify the official ^text1 which, let's face it, makes our mouths water but says little about the practicalities of eFTI, since this is the subject of the Delegated Acts and Implementing Acts currently being drafted by the DTLF - Subroup III.

What we want to make sure we do with eFTI in general:

- Existing EU legal acts

- Specific provisions of national laws

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Actors:

- Relevant economic operator: The main party concerned by eFTI, who will be the issuer of the data to be integrated and certified on the eFTI platforms.

- Competent authority: The second party involved in the eFTI. It will be the recipient of the certified data and its validator.

- eFTI service provider: A party that provides an economic operator with the means to process eFTI data through a contract.

- eFTI platform developer: Economic actor who writes code and maintains the IT infrastructure that hosts an eFTI platform.

- European Commission: Executive power - 27 commissioners appointed by governments and approved by Parliament - aka The Commission or The guardian of the treaties. European body that implements laws and monitors member states.

- Committee: Assembly of local and regional representatives of the European Union that allows subnational authorities (regions, counties, provinces, departments, municipalities, cities, etc.) to make their voices heard directly within the EU institutional system. A group in which all EU countries are represented and which supervises, for example, the work of the Commission in the context of an implementing act (in EU jargon: comitology).

- Council: Executive power - 27 heads of state + President of the European Council - European body composed of the heads of state of the member states. It acts as a driving force for European legislation.

- European Parliament: Legislative and budgetary power - 705 MEPs - European body composed of MEPs elected by the electorate of each Member State. It acts as an approving body for European legislation and acts as a counterweight to the European Commission.

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List of related regulations

- Road transport: CMR (regulated by the UN)

- Air transport: IATA672 & Montreal Convention

- Rail transport: COTIF

- Inland waterway transport: CMNI

- Waste shipment: EC 1013/2006

- Powers of customs offices: EC 952/2013, EU 2019/1239

- European Interoperability Framework - Implementation Strategy (March 23, 2017)

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The Glossary page lists recurring terms to explain them.

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#Briefing

This regulation plays an essentially formal role in that it only announces the arrival of the framework on which the eFTI ecosystem will be based. This regulation leaves it to future texts to materialize the procedures and tools that will be used. By future texts we mean :

- Delegated acts

- Enforcement proceedings

- Technical specifications

- Detailed specifications or rules

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That being said, it would be a pity to neglect these 16 pages of a frenetic lyricism, these 9000 words full of a teasing poetry and these 65 0000 characters of a troubled eroticism if one wants to take the trouble not to ignore the law. The law is hard, but it is the law, as the ancient adage says, to which one would naturally want to add, almost by automatism, that it is austere, dry and abstruse. However, the eFTI approach has at least two virtues for the common man:

- That of imposing oneself on public authorities, implacable giants with immovable feet, before private actors, ordinary and mortal, powerless pawns (is this really the case?).

- That of allowing ourselves time to take our time, time to let ourselves spend time before the legislative hammer comes down mercilessly. The eFTI is just waiting to be embraced, because its positive impact lies in its adoption by everyone, the only channel through which digital benefits will spread into everyday practices.

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Questions of time, several horizons are defined, the occasion to prove once again that the contraction of space-time is not only a view of the mind of a shaggy physicist, because the time that anyone puts the foot to the stirrup, we will be in 2025, and probably not ready:

- Until 2024: Specification and gradual adoption of rules for all stakeholders concerned.

- 2024: Trial run, the eFTI comes into force but the competent authorities are exempt from strict obligations.

- 2025: Full implementation; eFTI is non-negotiable for the relevant authorities.

- 2029: Review of the period elapsed to extend the obligation to economic operators.

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So far, everything is fine, everything is alive and floating in the luminous but blurred limbo of the theory. The implementation will be based on several ideas, pillars and priorities:

- The elimination of paper: A huge catch-all, the size of Mary Poppins' bag, hiding a myriad of IT systems, processes, data models, digital platforms, and service providers of all kinds. This is the central idea behind the new ecosystem that is being created and which, beyond the complexity of the subject, represents an opportunity to harmoniously align players and processes that are sometimes at an impasse in terms of development. The general idea, put bluntly, could be summed up as follows: "A little modernity won't hurt the Flintstones, even if it's scary to put IT everywhere."

- Interoperability: Whether it is a love match or not, the aim of the game is to make the above-mentioned actors and processes intelligible to each other. Harmonizing legislation and practices between EU countries, ensuring seamless transfers between different modes of transport (road, air, rail, river), and guaranteeing real-time access to public institutions (sometimes the least well equipped in terms of IT tools), which are the lifeblood of eFTI. And if not for mutual love, then let it be for the love of European competitiveness.

- Regulatory information: Illustrating the desire for consistency between each country's regulatory frameworks, the term "regulatory information" is used to refer to any information that can and must be conveyed by the eFTI. The completeness of the list of regulatory information, which is sometimes common to all EU members and sometimes specific to one or more members, is one of the major challenges for the implementation of the eFTI ecosystem.

- The players involved: The landscape can be divided into several levels, depending on whether we are describing the traditional players in the logistics chain (e.g., freight forwarders, customs, dockers, carriers) or the new players linked to the characteristics of the eFTI ecosystem. Among these new players, we can distinguish between direct players who play an operational role in the transport and logistics chain (e.g., eFTI platform developers, eFTI service providers) and indirect players who guarantee the eFTI standard (auditors, certification bodies).

- Historical actors: An economic operator sends regulatory information in digital format to an eFTI platform that certifies the data so that a competent authority can verify or validate its validity.

- This implies that the economic operator is able, for example, to convert a paper consignment note into a digital format that complies with the eFTI data model.

- New direct actors: An eFTI service provider is delegated by an economic operator to handle the sending or transformation of regulatory information into digital format on the eFTI platform.

- In this case, the service provider acts as an intermediary between the initial format of the economic operator's documents (regardless of the format, paper or digital - PDF, txt, EDI, etc.). It is indeed possible to envisage a fully-fledged role insofar as the task of intelligently processing a document from its initial format to the target format constitutes a profession in its own right involving data manipulation using technologies such as OCR, ETL, etc.

- New indirect players: An eFTI platform or an eFTI service provider will have to be approved by a conformity assessment body, which is itself subject to an accreditation body that reports tothe national authority of a Member State or directly to the European Commission. With such a matryoshka system, we are on the verge of integrating Russia itself into the eFTI ecosystem.

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A somewhat abrupt conclusion: The outcome and virtues of eFTI depend primarily on the actual gain possible in the switch from paper to digital. For the glass half empty, paper is a laborious system and, as a legacy system, it represents a mountain with an unshakeable and almost immovable foundation, while digital runs the risk of becoming a sprawling gas factory. The glass is half full and we can see the diaphanous glow of the end of the papivore era and the emergence of an ecosystem where actors are equipped with interoperable tools built on homogeneous procedures.

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Analysis of the text

Article 1 & 2 Initial statement

The efficiency of freight transport is vital for growth, competitiveness, economic cohesion and the functioning of the European Union's internal market.

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Article 3 & 4 Gains and brakes

The authorities are not ready to accept electronic formats, which do not yet have a legal framework. The documents concerned by the switch to an electronic format are all those that allow logistics actors to prove their compliance with the requirements for the transport of goods in the EU.

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Article 5 Ambition

The ambition is to deploy electronic (i.e. paperless) means throughout the EU and in all phases of transport operations within the EU.
All regulatory information and all modes of transport are included in this approach.

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Article 6 Frameworks in which the eFTI is registered

The eFTI is designed to meet all regulatory information requirements at different scales:

- EU legal acts.

- National law if the information is identical with regard to EU legal acts.

- National law if it requires additional information with regard to EU legal acts.

- Relevant international conventions:

- Road transport: CMR (regulated by the UN).

- Air transport: IATA672 & Montreal Convention.

- Rail transport: COTIF.

- Inland waterway transport: CMNI.
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Furthermore, electronic communication must be two-way, i.e. the competent authorities "should endeavor" to communicate electronically with the economic operators concerned.

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Article 7 EU Frameworks where the eFTI is registered

In particular in the area of :

- Waste shipment: EC 1013/2006

- Powers of customs offices: EC 952/2013, EU 2019/1239

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Article 8 Availability of human readable format

It is envisaged that any relevant economic operator must remain able to provide regulatory information in a human-readable format if required by a competent authority e.g. if no access to an eFTI platform is available. In other words, the use of eFTI platforms will not release stakeholders from the obligation to provide human-readable formats.

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Article 9 Common specifications

The regulation does not specify the form that the eFTI will take, it is the role of the delegated and implementing acts to establish the specifications that will have to be respected by the actors.

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Article 10 Data model

The common specifications will define a data model encompassing all the data needed to meet the requirements for regulatory information throughout Europe and for all freight transport activities.

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Article 11 Requests for additional information

The scope of the common specifications will have to go as far as taking into account the specific requests of the competent authorities (especially customs) for additional information. In other words, the eFTI platforms will have to be able to satisfy "tailor-made" requests from the competent authorities.

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Article 12 Interoperability with existing law

The common specifications will have to take into account the specifications already contained in the European and international standards for data exchange.

- Texts mentioned

- European Interoperability Framework - Implementation Strategy (Communication of March 23, 2017)

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Article 13 Common Access Points

Mentions the creation of common access points that act as an intermediary between the eFTI platforms and the competent authorities in order to reduce costs. These access points will not be storage points, except for metadata.

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Article 14 Functional requirements for eFTI platforms

Functional requirements will cover such aspects as data provisioning, rights matrix, privacy and GDPR.

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Article 15 Interoperability between eFTI platforms and existing systems

A particular point of attention is mentioned on the need for interoperability of future eFTI platforms with each other and with existing IT systems.

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Article 16 eFTI Certification

Member States are responsible for setting up the certification scheme for eFTI platforms and eFTI service providers according to the current Regulation (EC 765/2008) for accreditations. Existing service providers are recommended to comply with the eFTI platform requirements.

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Article 17 Exemption from the use of eFTI platforms & additional uses

It is conceivable that a Member State may decide to use other IT systems than an eFTI platform if it so chooses in the context of the provision of eFTI. It is also conceivable that eFTI platforms are used for purposes beyond their original mandate e.g. for the exchange of data between companies and not only between companies and competent authorities.

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Article 18 Implementing powers of the Commission

The Commission is delegated the competence to draft detailed rules, technical specifications and detailed specifications for eFTI. In accordance with EU Regulation 182/2011.

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Article 19 Competence to adopt Commission acts

The Commission is delegated the competence to adopt acts and to amend the regulation in coherence with the delegated acts and the future implementing acts. Reference is made to the expert groups establishing the TLD and the need for transparency between the European Parliament, the Member States' experts and the Commission's expert groups.

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Article 20 Article 5 of the European Treaty

Article 5 of the European Treaty (subsidiarity) is invoked: the EU takes charge of the realization of the project which cannot be carried out by the individual Member States.

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Article 21 GDPR

eFTI processing must comply with the GDPR

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Article 22 Evaluation of the regulation

The Commission should conduct an evaluation of the regulation to assess the performance of the regulation in relation to its objective.

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Article 23 "Digital by default" principle

The effectiveness of the system depends on direct and real-time access to information by the competent authorities. To this end, the Commission is expected to take initiatives to compel and facilitate the use of electronic means. This may take the form of amendments to this Regulation or other EU legal acts.

- Texts mentioned:

- European eGovernment Action Plan 2016-2020 — Accelerating the digital transformation of public administrations (Communication of 19/04/2016)

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Article 24 Delegated and implementing acts

The regulation will only be effectively applied once the legal acts currently being prepared have entered into force in the form of delegated and implementing acts proposed by the Commission and adopted by the European Parliament and the Council. In other words, the scheme will gradually enter into force as the legal acts are adopted (see Timeline).

Article 25 & 26 Legal considerations

Chapter 1 General Provisions

Article 1 Purpose

The Regulation establishes a legal framework for eFTI:

- Basic conditions for acceptance by the competent authority

- Applicable rules for provision by the economic operator concerned

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Article 2 Scope of application

The regulation must be consistent with existing regulations, including

- EEC 11 - A.6 § 1

- Directive 92/106/EEC - A.3

- Regulation (EC) No. 1072/2009 - A.8 § 3

- Regulation 1013/2006 - A.16.c, A.18 § 1

- European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) - Annex A Part 5 Chapter 5.4

- Regulations concerning the international transport of dangerous goods by rail (RID) - Part 5 Chapter 5.4

- Directive 2016/797, Regulation 300/2008.

The regulation must also be consistent with the specific provisions of each national law. Member States must therefore submit these specific provisions and requirements regarding regulatory information.
Member States must notify the Commission of their specific requirements regarding regulatory information by 21/08/2021 at the latest.

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Article 3 Definitions

See Glossary

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Chapter 2 Regulatory Information Made Available Electronically

Article 4 Requirements for the economic operators concerned

Simplified diagram of interactions

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Article 5 Requirements for competent authorities

Competent Authorities will have to be able to process the eFTI format also for additional information related to provisions of national law, i.e. :

- Receive and read all regulatory information

- Validate electronically (i.e., the equivalent of a stamp or paper certificate)

Member States are required to allow their competent authorities to process this information.

- Texts mentioned:

- Regulation (EC) No. 1013/2006 - A.26 §3,4

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Article 6 Confidential Business Information

One word of advice: confidentiality must be assured.

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Article 7 eFTI common dataset and eFTI subset

In establishing the eFTI data model, the following repositories must be taken into account:

- International conventions

- EU law

- Existing data models at international and EU level, including multimodal models

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Article 8 Procedures and terms of access

The Commission has the task of adopting the implementing acts that will govern the rules for access of competent authorities to eFTI platforms. The focus is on the efficiency of administrative procedures and the reduction of compliance costs for all actors.

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Chapter 3 eFTI Platforms and eFTI Service Providers

Section 1 Requirements for eFTI platforms and eFTI service providers

Article 9 eFTI Platforms

In addition to the upcoming specifications, the regulations emphasize:

- The implementation of a unique identifier per transfer (and its corresponding data elements).

- The implementation of authenticated and authorized access.

- The need to avoid any total deletion of data; transaction elements are retained.

- The need to comply with archiving rules in accordance with EU legal acts and national law provisions Article 10 eFTI service providers.

In addition to the upcoming specifications, the regulations emphasize:

- Immediate access to regulatory information for competent authorities.

- No costs or burdens for the competent authorities.

- Securing data against hacking, loss, and destruction.

This milestone is set for no later than August 21, 2023.

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Section 2 Certification

Article 11 Conformity Assessment Bodies

Each Member State shall designate an authority which shall maintain a list of accredited conformity assessment bodies.
Each national accreditation body shall publish on its website the list of accredited conformity assessment bodies.
Each Member State (via its national authority) publishes the list of certified conformity assessment bodies, eFTI platforms and eFTI service providers on an official government website.
The Commission publishes each Member State's list on its official website.
And the Laughing Cow continues to laugh as the mise en abyme is still going strong.

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Article 12 Certification of eFTI platforms

It is at the request of an eFTI platform developer that the certification mechanism of an eFTI platform is triggered, either to obtain a certification or to renew a certification (in case of an evolution of the technical specifications concerned by this regulation). Mechanisms for withdrawal or suspension of a certification are foreseen at the initiative of the conformity assessment body.
The eFTI platforms therefore make available information with a certification mark.

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Article 13 Certification of eFTI Service Providers

Same mechanism as for the certification of eFTI platforms

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Chapter 4 Delegation of Authority and Enforcement Provisions

Article 14 Exercise of delegation

The delegation of adoption is given to the Commission insofar as the European Parliament or the Council does not object.

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Article 15 Committee

Definition of the committee assisting the Commission (within the meaning of Regulation 182/2011)

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Chapter 5 Final Provisions

Article 16 Review

By 2/21/2029, the Commission will prepare a report outlining its key findings. In addition, the Commission will evaluate possible initiatives to:

- Require economic operators to submit regulatory information in accordance with eFTI

- Strengthen interoperability and interconnection between the eFTI environment and other regulatory information processing systems.

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Article 17 Control

By 21/08/2027, and every five years thereafter, the Commission will count the number of registrations based on the registers of each Member State as well as the number of treatments by the competent authorities.

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Annex I REGULATORY INFORMATION WITHIN THE SCOPE OF THIS REGULATION

Generic regulatory considerations.

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Appendix II REQUIREMENTS FOR COMPLIANCE ASSESSMENT BODIES

Conformity assessment bodies must be independent of the actors involved or their independence will have been demonstrated.
Pious hope on the integrity and competence of auditors.

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Starting in 2022

Timeline from 08/20/2020

Timeline

- August 20, 2020: Regulation 2020/1056.

- Date of entry into force of the first legislative act: Regulation 2020/1056.

- 08/2021: Specific provisions under national law.

- Notification by Member States of national legislation.

- 2020-2023: Drafting of DA and IA by DTLF.

- Work of the DTLF, the Delegated Acts (DA) expert group, and the Implementing Act (IA) committee.

- Starting in February 2023, gradual adoption:

- 02/2023: Adoption of rules for authorities.

- DA on eFTI data sets and national obligations.

- AI on common rules for authorities.

- 08/2023: Adoption of specifications for eFTI platforms and providers.

- AI on the specifications of eFTI platforms and eFTI providers.

- 03/2024: Adoption of eFTI certification rules.

- DA on certification rules for eFTI platforms and eFTI service providers.

- 08/2024: Partial entry into force.

- Date of partial entry into force (exception to the obligation for authorities to accept eFTI data).

- 08/2025: Full implementation.

- Full date of entry into force, i.e. Member State authorities are required to accept eFTI data.

- 02/2029: Revision.

- Obligation for economic operators.

- Interoperability with other systems in place, e.g., the European Maritime Single Window or the European Customs Single Window.

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What's next?

To be continued...

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