Considering that in the case of customs security measures it is useful to foresee provisions for appropriate rebalancing measures, including suspension of the relevant provisions where the equivalence of customs security measures is no longer assured,

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:

CHAPTER I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Agreement:

(a) ‘inspections’ means any operation whereby the customs authorities or any other inspection authority carries out the physical examination or visual inspection of the means of transport or of the goods themselves in order to ascertain that their nature, origin, condition, quantity and value are in conformity with the particulars contained in the documents produced;

(b) ‘formalities’ means any formality to which the authorities subject a trader and which consists in the production or examination of documents, certificates accompanying the goods, or other particulars, irrespective of the method or medium employed, relating to the goods or the means of transport;

(c) ‘risk’ means the likelihood of an event occurring in connection with the entry, exit, transit, transfer and end-use of goods moving between the customs territory of one of the Contracting Parties and third countries and the presence of goods not in free circulation in the territory of one of the Contracting Parties, which jeopardises the safety and security of the Community, its Member States or Switzerland, public health, the environment or consumers;

(d) ‘risk management’ means the systematic identification of risk and implementation of all measures necessary for limiting exposure to risk. This includes activities such as collecting data and information, analysing and assessing risk, prescribing and taking action and regular monitoring and review of the process and its outcomes, based on sources and strategies defined by the Community, its Member States and Switzerland, or at the international level.

Article 2

Scope

1. Without prejudice to special provisions in force under agreements concluded between the Community and Switzerland, this Agreement shall apply to inspections and formalities concerning the carriage of goods which have to cross a frontier between Switzerland and the Community and to customs security measures applicable to the carriage of goods to or from third countries.

2. This Agreement shall not apply to inspections or formalities concerning ships and aircraft as means of transport; however, it shall apply to vehicles and goods carried by the said means of transport.

Article 3

Territories covered

1. This Agreement shall apply, on the one hand, to the Community customs territory and, on the other, to the Swiss customs territory and its customs enclaves.

2. This Agreement shall apply in the Principality of Liechtenstein for as long as that Principality is bound to Switzerland by a customs union treaty.