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International / Global
EC approves new regulation
By Doug Newhouse, 14 August 2007
Just in case any readers missed this news in the middle of the summer holiday season, the European Commission has now approved the new regulation that will allow air passengers arriving from selected third country airports to transfer flights with their duty-free liquids at EU airports.
Under the new regulation, the Commission will exempt from current restrictions liquids purchased by passengers at third country airports that meet specific standards for airport and retail supply chain security and have implemented liquids-in-hand baggage restrictions and ICAO-standard sealed ‘tamper evident’ bags for liquids purchases. The Commission may inspect airports in third countries to assess compliance.
The new regulation represents a significant step forward for the ETRC and the worldwide travel- retail industry in its campaign to safeguard duty-free sales under new aviation security rules and is the result of many months of hard work by the ETRC, its members and allies.
ETRC President Frank O’Connell praised the Commission’s efforts in delivering the new regulation: “I would like to thank Vice President Barrot and his team for their will and determination in addressing a problem that has badly affected the global duty free market. The European Commission made solving the ‘transfer passenger’ problem a priority and the speedy approval of the regulation is testimony to this,” said O’Connell.
However, O’Connell warned that the problems affecting passengers, airport retailers and producers around the world could only be addressed by the immediate and broad implementation of the new regulation.
“The priority is implementation. The Commission and key third countries must move as quickly as possible to begin the recognition process,” he said. As already reported by TREND, Singapore is expected to be the first country to be approved.
IMPORTANT NOTICE FROM ETRC:
For an airport to gain approval, full implementation of the ICAO recommendations on liquid restrictions, supply chain security, and the use of the ICAO specification tamper evident bag will be mandatory. The European Commission will audit airports in third countries to assess security standards.
The ETRC priority now is the implementation of the new EU regulation and ETRC reports that it is now pressuring the European Commission to immediately begin the approval process with as many third country governments as possible.
The European Commission has begun negotiations on approval with some third country governments and the first agreements are expected in the autumn.
However, it is essential that, until a country and its airports have been “approved” by the European Commission, airport retailers do not sell duty free liquids to EU-bound transfer passengers as they will continue to have to discard their purchases at entry point to the EU, regardless of whether they are sealed in a ICAO STEB or not.
WHAT AIRPORT RETAILERS MUST DO:
ETRC says: The EU regulation is not a global solution to the ‘transfer passenger’ problem. However, the regulation can significantly reduce the effects of the problem worldwide if the regulation is implemented broadly. This means getting the European Commission to extend approval to as many third countries as possible , as quickly as possible.
Airport retailers operating in third countries have a vital role to play in this process. Once a country has adopted the ICAO guidelines on restricting liquids in hand luggage and on securing the travel retail supply chain at its airports , the national government must apply for recognition to the European Commission.
To do this, airport retailers will need a clear strategy for engaging their government. The following provides a general guide on the key elements of a lobbying plan for contacts with government officials.
1. Engage your government at the highest level Your principle target will be the government minister responsible for aviation and airports, normally the Minister for Transport. It will also be essential that senior diplomats and civil servants are fully briefed and that that the Brussels based national missions are fully involved. Contact should also be made with the EU Commission’s representation in your country, where applicable.
2. Maintain the pressure on the government. Consistent pressure should be applied on government ministers and officials to ensure that EU recognition remains a priority. This will require regular communication with senior government representatives and engaging the support of other national bodies, such as parliamentarians, chambers of commerce, etc. The press can also be a useful tool in getting your message across, but must of course be approached carefully.
3. Build industry stakeholder alliances. This is not just an issue for the airport retailers. The airport authority, airlines, product suppliers, particularly liquor companies and the fragrance houses are all affected by the transfer passenger problem. This should be a joint campaign involving all industry partners.
4. Prepare key campaign argumentation. Prepare arguments why the government should be seeking EU recognition of its airports. Establish the impact that the current EU restrictions is having on the business, such as the affect on sales, loss of consumer confidence, etc., including hard data where available.
It is essential that the industry understands that the European Commission will only react to demands for recognition from governments of third countries. Without political pressure from these governments, no amount of lobbying by the ETRC will bring about a solution to the current situation.
Finally, the ETRC has gained unique experience and expertise through leading the Global Aviation Security Campaign and can provide support and advice for your national lobbying activities. For further information, please contact the following executives:
Keith Spinks
Secretary General
European Travel Retail Council
Tel: +34 932 051 276
Mob: +34 687 529 528
E- mail: spinks.etrc@wanadoo.es
John Hume
Partner
Hume Brophy Communications
Tel: +353 1 662 4712
Mob: +353 868 515 478
E- mail: john.hume@humebrophy.com
By Doug Newhouse, 14 August 2007
Just in case any readers missed this news in the middle of the summer holiday season, the European Commission has now approved the new regulation that will allow air passengers arriving from selected third country airports to transfer flights with their duty-free liquids at EU airports.
Under the new regulation, the Commission will exempt from current restrictions liquids purchased by passengers at third country airports that meet specific standards for airport and retail supply chain security and have implemented liquids-in-hand baggage restrictions and ICAO-standard sealed ‘tamper evident’ bags for liquids purchases. The Commission may inspect airports in third countries to assess compliance.
The new regulation represents a significant step forward for the ETRC and the worldwide travel- retail industry in its campaign to safeguard duty-free sales under new aviation security rules and is the result of many months of hard work by the ETRC, its members and allies.
ETRC President Frank O’Connell praised the Commission’s efforts in delivering the new regulation: “I would like to thank Vice President Barrot and his team for their will and determination in addressing a problem that has badly affected the global duty free market. The European Commission made solving the ‘transfer passenger’ problem a priority and the speedy approval of the regulation is testimony to this,” said O’Connell.
However, O’Connell warned that the problems affecting passengers, airport retailers and producers around the world could only be addressed by the immediate and broad implementation of the new regulation.
“The priority is implementation. The Commission and key third countries must move as quickly as possible to begin the recognition process,” he said. As already reported by TREND, Singapore is expected to be the first country to be approved.
IMPORTANT NOTICE FROM ETRC:
For an airport to gain approval, full implementation of the ICAO recommendations on liquid restrictions, supply chain security, and the use of the ICAO specification tamper evident bag will be mandatory. The European Commission will audit airports in third countries to assess security standards.
The ETRC priority now is the implementation of the new EU regulation and ETRC reports that it is now pressuring the European Commission to immediately begin the approval process with as many third country governments as possible.
The European Commission has begun negotiations on approval with some third country governments and the first agreements are expected in the autumn.
However, it is essential that, until a country and its airports have been “approved” by the European Commission, airport retailers do not sell duty free liquids to EU-bound transfer passengers as they will continue to have to discard their purchases at entry point to the EU, regardless of whether they are sealed in a ICAO STEB or not.
WHAT AIRPORT RETAILERS MUST DO:
ETRC says: The EU regulation is not a global solution to the ‘transfer passenger’ problem. However, the regulation can significantly reduce the effects of the problem worldwide if the regulation is implemented broadly. This means getting the European Commission to extend approval to as many third countries as possible , as quickly as possible.
Airport retailers operating in third countries have a vital role to play in this process. Once a country has adopted the ICAO guidelines on restricting liquids in hand luggage and on securing the travel retail supply chain at its airports , the national government must apply for recognition to the European Commission.
To do this, airport retailers will need a clear strategy for engaging their government. The following provides a general guide on the key elements of a lobbying plan for contacts with government officials.
1. Engage your government at the highest level Your principle target will be the government minister responsible for aviation and airports, normally the Minister for Transport. It will also be essential that senior diplomats and civil servants are fully briefed and that that the Brussels based national missions are fully involved. Contact should also be made with the EU Commission’s representation in your country, where applicable.
2. Maintain the pressure on the government. Consistent pressure should be applied on government ministers and officials to ensure that EU recognition remains a priority. This will require regular communication with senior government representatives and engaging the support of other national bodies, such as parliamentarians, chambers of commerce, etc. The press can also be a useful tool in getting your message across, but must of course be approached carefully.
3. Build industry stakeholder alliances. This is not just an issue for the airport retailers. The airport authority, airlines, product suppliers, particularly liquor companies and the fragrance houses are all affected by the transfer passenger problem. This should be a joint campaign involving all industry partners.
4. Prepare key campaign argumentation. Prepare arguments why the government should be seeking EU recognition of its airports. Establish the impact that the current EU restrictions is having on the business, such as the affect on sales, loss of consumer confidence, etc., including hard data where available.
It is essential that the industry understands that the European Commission will only react to demands for recognition from governments of third countries. Without political pressure from these governments, no amount of lobbying by the ETRC will bring about a solution to the current situation.
Finally, the ETRC has gained unique experience and expertise through leading the Global Aviation Security Campaign and can provide support and advice for your national lobbying activities. For further information, please contact the following executives:
Keith Spinks
Secretary General
European Travel Retail Council
Tel: +34 932 051 276
Mob: +34 687 529 528
E- mail: spinks.etrc@wanadoo.es
John Hume
Partner
Hume Brophy Communications
Tel: +353 1 662 4712
Mob: +353 868 515 478
E- mail: john.hume@humebrophy.com
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• ARI seeks bigger stake in Aerofirst (updated) (9 August 2007)
• Lufthansa considers economy class beds (7 August 2007)
• US threatens legal action over emissions (6 August 2007)
• Grappa goes American (1 August 2007)
• EU agrees third-country liquids exemptions (31 July 2007)
• World passenger traffic up 6.3%: IATA (31 July 2007)
• HUGO BOSS: 150 travel retail stores (31 July 2007)
• Top 10: retail growth beats passenger growth (27 July 2007)
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