Ambitious customs legislation amendment coming soon

The reform relies on the digital transformation of the economy to shorten lengthy customs procedures and replace traditional statements with ‘smarter’ ones. At the same time, the customs administration will get new tools and means to properly assess and stop imports that pose a real risk to the EU, its citizens, and the economy.

The reform responds to the current pressures under which EU customs operates, including a huge increase in trade volumes, especially in e-commerce, a fast-growing number of consignments’ properties that must be checked at the border, and shifting geopolitical realities and crises. It will make the customs framework fit for a greener, more digital era and contribute to a safer and more competitive single market. The reform simplifies and rationalises customs reporting requirements for traders and should reduce the time needed to complete import processes, namely thanks to a single customs interface facilitating data re-use. For e-commerce and large companies, the systems are to be made available already in 2028, for other entities in 2032.

The amendment to customs legislation contains the following objectives:

• Central authority – An EU Customs Authority will be established to oversee the EU Customs Data Hub. The Data Hub will use a new customs system with real-time data. Over time, it will replace the existing customs IT infrastructure of EU member states, saving up to two billion euros a year in operating costs.
   
• Partnership with businesses – in the reformed EU customs union, traders will be able to log information on their products and supply chains through a single online environment in the EU Customs Data Hub. Thanks to machine learning, artificial intelligence, and human intervention, customs authorities will have an overview of supply chains and movement of goods across Europe. Under the new regime, it is also envisaged that trusted traders could release goods into circulation in the EU without any active customs intervention.
   
• Smarter customs checks – the proposed new system will give customs authorities a bird's-eye view of the supply chains and production processes. Sharing real-time data between member states will allow for faster and more effective responses to potential risks. Artificial intelligence will be used to analyse the data and to predict potential problems, which will allow EU customs authorities to focus their resources on stopping dangerous or illegal goods, and on ensuring compliance with EU law.
   
• More modern approaches to e-commerce – the amendment introduces the responsibility of online platforms for compliance with customs obligations. The platforms will make customs and VAT payments on purchases, ensuring transparency for consumers and reducing hidden charges. The current exemptions for goods up to €150 will be abolished to avoid fraud. The reform also simplifies customs duty calculation for the most common low-value goods bought from outside the EU, which will be beneficial for the platforms as well as for the customs authorities.