ESC welcomes the agreement between the European Parliament and the Council, delivering a landmark reform of the EU Customs Union. The most ambitious reform of EU customs rules since 1968 introduces new measures for e-commerce and launches a modern, data-driven customs architecture that simplifies procedures and enhances efficiency. With these vital upgrades in place, European customs will be equipped to adapt to the fast-changing landscape of international trade.
Customs authorities today face a multitude of challenges, including a surge in low-value e-commerce imports, increased risk of unsafe products and fraud, shifting geopolitical trade dynamics, and the threats of organised crime and smuggling. Customs play a vital role in maintaining the safety of the Single Market and its citizens.
To respond to these challenges, the Commission put forward a comprehensive customs reform package in May 2023, to update and integrate customs operations across the EU. This reform is built on three pillars: smarter risk management and customs controls, a modern framework for e-commerce, and a stronger partnership with businesses. Supported by a new EU Customs Authority (‘EUCA’), it will digitalise and simplify procedures, reduce costs and red tape, promote a more uniform approach at the external border, increase the accountability of online platforms, and better protect the Single Market through stronger, data-driven risk management and enforcement.
A data-driven customs approach
At the heart of the customs reform lies the establishment of a new EU agency, the EU Customs Authority, to be located in Lille, France. It will coordinate and modernise customs operations across all 27 Member States. The EUCA will facilitate information-sharing and provide risk management at EU-level, thereby enhancing the harmonised implementation of EU customs legislation, as well as the detection and prevention of customs fraud across the Union.
As the engine of the reform, the EU Customs Authority will manage the EU Customs Data Hub, a single digital interface for all customs operations in the EU. The data hub will allow businesses to submit data only once, eliminating the need for traders to navigate through multiple national systems. For customs authorities across the EU, this integration of data means access to real-time, first-hand information and an overarching, EU-level overview. This is expected to save Member States over €2 billion yearly in operational costs.
To facilitate legitimate trade, the reform also strengthens the framework for trusted traders. Businesses with strong compliance records will be rewarded, benefiting from simplified procedures and fewer controls, allowing customs authorities to focus their resources on high-risk consignments.
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