Sustainable Management with the border patrol repository of the Offshore Expertise Center

Magazine | 13-10-2022 | Herman Heringa

With MIVSP, Rijkswaterstaat collects a wealth of data from the North Sea: from water temperature, wave height, and wind speed to the routes of migratory birds and bats. This requires special measuring equipment, mostly sourced from abroad. Think of cameras, microphones, radars, antennas, and much more. MIVSP eventually installs this equipment in offshore wind farms on masts designed by them on transformer platforms and wind turbines. But before the measuring instruments go there, they are first tested on land at the Offshore Expertise Center (OEC) in Stellendam.

Organizing smarter

“Because the wind farms are located more than 12 miles offshore, they are not part of the exclusive economic zone (EEZ) of the Netherlands,” explains Steven Abdoelkhan, program manager of the OEC. “Therefore, we had to export all our equipment through customs. We spent a lot of time and money on various administrative tasks for import and export, even though we were not actually using the equipment in the Netherlands. Since maintenance extends over a period of at least 30 years, we are actively investing in research into forms of sustainable management, such as smart maintenance. So, we also decided to see if we could organize that import and export smarter and more efficiently. Thanks to the help of advisers from Rijkswaterstaat and EY (formerly Ernst & Young), we have now succeeded.”

Applying for a permit

“It quickly became clear to me that a so-called border patrol repository would be the right solution here,” says Ilona van den Eijnde, senior manager global trade at EY. “It is an area within the EEZ where you can store goods without import duties being payable. To run such a warehouse, you need permission from the border patrol, as they then hand over the management and control of those goods to you. Therefore, we started a process to apply for the necessary permit.”

Free trade zone

“An additional advantage of such a warehouse is that it is a kind of free trade zone,” adds Abdoelkhan. “This means that we do not have to pay import taxes on the goods stored here that meet the permit requirements. Since this involves expensive equipment, this saves a lot of money.” Van den Eijnde: “The difference between the gross and net price effectively goes into MIVSP's budget. You can do a lot of great things with that.”

Extension of the Dutch border patrol

“With a repository, you are effectively an extension of the Dutch border patrol. Therefore, you must ensure that they can check everything,” Van den Eijnde says. “For the permit, we have precisely described how we do that. We call this the administrative organization and internal control, or AO/IC for short. For example, it states that all goods stored at this location will receive a code indicating where they come from and where they are going.”

Completely new

“That sounds good on paper, but it also needs to be put into practice. The special thing for me was that Rijkswaterstaat had to set up this process entirely by itself,” emphasizes Van den Eijnde. “Normally, I mainly advise large international companies that already operate in this way. Here, we still had to appoint a responsible person who knows the border patrol processes and can code goods correctly, including the associated tax rates.”

Between two government services

Moreover, the unique aspect of this situation is that the agreements were made between two government services: the Dutch border patrol and Rijkswaterstaat. Van den Eijnde: “To obtain a permit for a warehouse, companies normally have to provide security to the Dutch border patrol: a bank guarantee for an amount corresponding to the value of the stored goods. But it would be a bit strange if one government had to provide a guarantee for the other. Therefore, we agreed that this security would not be necessary in this case.”

Secure closer

It is important, however, that the OEC's border patrol repository is securely closed with fences and access gates to prevent unauthorized access. Abdoelkhan: “The OEC was already divided into two parts: there is a yellow asphalt zone that is generally accessible and a black asphalt zone where you are required to wear personal protective equipment (PPE). For example, there is also a 1:1 test copy of the masts on which we hang our equipment. This PPE zone is now made suitable as a border patrol repository.”

Educating employees

“Goods within the fences cannot simply go outside,” Van den Eijnde emphasizes. “It’s a matter of educating employees. Borrowing a bolt is simply not allowed. Otherwise, it must be precisely recorded where it is going. You must be aware that all goods in the repository are under customs supervision, even though the daily supervision is in the hands of MIVSP. The Dutch border patrol must always be able to conduct a check.”

Extending the permit

There are currently restrictions on the management of stored goods within the repository. Van den Eijnde: “The permit is now initially arranged for purchasing. For Rijkswaterstaat, it is useful if suppliers deliver goods with a so-called T1 status – for transporting goods from outside the EU. This makes the declaration upon import into the warehouse easier. Testing equipment is also allowed, as it does not change the goods. The same applies to placing them in the North Sea. However, bringing equipment back for inspection and repair is currently not covered by the permit. We are investigating whether it is possible to add this because everything you have to do offshore is much more expensive.”

Proud

“I am very happy to have been involved with MIVSP through this question,” concludes Van den Eijnde. “It is very special to see what is possible with the North Sea data they collect here. Many parties can make use of this, and Rijkswaterstaat ensures that everything runs efficiently. This is really one of those projects you can proudly tell others you have worked on.”