An international conference opening in Shanghai on September 1 2010 will see representatives of the European Union and China discussing ways to enhance customs co-operation, with securing the supply chain, tacking smuggling – especially of cigarettes – and protecting intellectual property rights high on the agenda, the European Commission said.

Algirdas Šemeta, EU Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, will open the conference.

China is the EU's second trading partner after the United States and its biggest source of imports. The EU is China's largest export market.

"Both the EU and China therefore have a real interest in ensuring that safe, genuine and legal products can easily enter each other’s markets," the European Commission said.

Šemeta will spend three days in China, discussing key issues related to customs and anti-fraud measures with national authorities and business representatives, and will visit the port of Shanghai to see first-hand how Chinese customs controls operate, the statement said.

Šemeta said: "The booming trade between the EU and China is extremely positive. However, the downside is that we have seen a parallel increase in illegal trade, which must be stopped.

"Respect of customs rules is essential to protect our citizens and guarantee the free flow of goods between trading nations. This is why we must work even harder on efficient customs cooperation between the EU and China, built on mutual trust and common goals," Šemeta said.

EU customs play a crucial role: ensuring the balance between protecting society and facilitating legitimate trade flows. Customs have information on every single import and export that crosses EU borders, and use sophisticated methods to control these goods. 

China is the single most important challenge for EU trade policy. Co-operation between customs authorities on both sides is essential to facilitate this trade, the European Commission said.