According to the official EU website, the European Commission has presented on Wednesday (17.05.2023) an ambitious proposal for regulatory reform of the Customs union, which will include the most important changes since its creation.
The reform responds to current pressures under which the bloc's customs operate, including massively increasing trade volumes, especially in e-commerce, and a growing number of European Union (EU) rules that need to be controlled at the border, coupled with changing geopolitical realities and crises.
The proposal will allow the EU customs framework to adapt to a It was greener and more digital, and contribute to a more integrated single market safe and competitive. The reform will simplify and rationalize customs information requirements for “most reliable” traders; for example, by reducing the time needed to complete import processes and by providing a single EU interface, thereby facilitating the reuse of data. In doing so, it will help meet President von der Leyen's goal of reducing such burdens by 25%, without undermining related policy objectives.
Valdis Dombrovskis, Executive Vice-President of the European Commission, said that “the long-awaited reform is part of our plan to strengthen the EU’s open strategic autonomy. It will allow EU customs to better defend our financial and economic interests, while ensuring the safety of goods entering the EU. It will also facilitate trade, allowing all operators to do business inside and outside the EU. Global challenges such as climate change, e-commerce and illicit trade need a global response and more modern and efficient customs procedures worldwide. That is why our package also calls for the WTO and WCO to move in this direction.”
The legislative proposals will now be sent to the European Parliament and the Council of the European Union for agreement, and to the European Economic and Social Committee for consultation.
New EU Customs Data Centre
In the reformed EU Customs Union, companies wishing to introduce goods into the European market will be able to register all information about their products and supply chains in a single online environment: the new EU Customs Data Centre. This technology will collect data provided by companies and, through machine learning, artificial intelligence and human intervention, will provide authorities with a 360-degree overview of supply chains and the movement of goods.
A detail: Companies will only need to interact with a single portal by submitting their customs information and will only need to submit data once for multiple shipments. The EU Customs Data Hub will allow goods to be imported into the EU with minimal customs intervention, without compromising security or anti-fraud requirements.
According to the proposal, the data hub will be opened for shipments ofe e-commerce in 2028, followed for other importers (on a voluntary basis) in 2032, which will generate immediate benefits and simplifications. In 2034, a review will assess whether this possibility can be extended to all traders when the hub is mandatory from 2038.
Faster risk management
The proposed new system will offer customs authorities a live view of the supply chains and production processes of goods entering the EU. All Member States will have access to real-time data and will be able to share information to respond to risk management more quickly, consistently and effectively.
Artificial intelligence will be used to analyze and control data and to predict problems.s even before the goods have begun their journey to the EU. This will allow EU customs authorities to focus their efforts and resources where they are most needed: prevent the entry into the Union of unsafe or illegal goods and defend the growing number of EU laws banning certain goods that go against the common values of the EU, for example in the field of climate change deforestation, and/or, the forced labor, to name just a few examples. It will also help ensure that duties and taxes are collected appropriately, to the benefit of national and EU budgets.
Guarantee of compliance with customs obligations
The reform will make online platforms the key players in ensuring that goods sold online in the EU comply with all customs obligations. This is a major departure from the current customs system, which puts the responsibility on the individual consumer and carriers. Platforms will be responsible for ensuring that customs duties and VAT are paid at the time of purchase, so consumers no longer have to deal with hidden charges or unexpected paperwork when their package arrives. With online platforms as official importers, EU consumers can be assured that all duties have been paid and that their purchases are safe and meet EU environmental, safety and ethical standards.
At the same time, The reform abolishes the current threshold under which goods valued at less than €150 are exempt from customs duties.. At present, Up to 65% of these packages entering the EU are undervalued to avoid import customs duties.
The reform also simplifies the calculation of customs duties for the most common low-value goods purchased outside the EU, reducing the thousands of possible customs tariff categories to just four. This will make it much easier to calculate customs duties for small packages, helping both platforms and customs authorities to better manage the billion e-commerce purchases entering the EU every year. In addition will eliminate the possibility of fraud.
The EU expects the new personalised e-commerce regime to generate additional customs revenues worth €1 billion a year.EU customs reform)
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