During the Whitsun weekend, it was announced that the Polish Presidency had submitted a revised text of the Customs Code to the Member States. The European Parliament had already reached an agreement on the proposal earlier in 2024. The Member States are expected to vote on the proposal within the Council Working Group in the near future, after which trilogue negotiations can begin.
The revision of the Customs Code is an ambitious project, set to bring about fundamental changes. The urgency surrounding the proposal stems primarily from the dramatic rise in e-commerce shipments, which are placing immense pressure on customs authorities at the EU’s external borders. At the same time, these shipments often escape adequate scrutiny, resulting in the circulation of goods that do not comply with European standards.
To address this challenge, the European Commission, Parliament, and Member States are proposing a central role for the so-called “deemed importer.” Platforms based in third countries will be required to play a greater role in providing data on e-commerce shipments. These shipments will need to be processed through a central Customs Data Hub. Additionally, to reduce the volume of e-commerce imports, the European regulator is considering the introduction of a handling fee for such shipments.
For regular shipments, a key change is the introduction of a single liable person—an important shift from the current situation. Under existing legislation, it is often difficult for customs authorities to identify a responsible party, especially in the context of non-tax legislation. Under the new legislation, the person defined as the importer—either the importer themselves or a representative, usually a customs agent—will be held liable. To simplify the settlement process, it is assumed that the representative and/or importer will hold AEO (Authorised Economic Operator) authorisation. The European Commission’s initial proposal allowed only those with Trust and Check status to qualify for facilitation. However, with a narrow definition of “importer,” this could result in many companies being excluded from these benefits.
Under the new system, the competent customs authority will be the authority in the Member State where the trader is established. This authority will provide instructions for any necessary checks at the point where goods enter the EU. Marking a departure from centuries of practice, the importer will no longer submit a traditional customs declaration. Instead, they will prepare data in the Customs Data Hub, where customs and other relevant authorities can access the information. Importers will be responsible for calculating the amount due themselves, similar to current VAT procedures. Data stored in the hub must be retained for a minimum of 10 years.
A new customs agency will be established to design and manage the database. Member States will be represented within this agency, which will also be tasked with conducting risk analyses.
The European regulator has set a long-term timeline for the full implementation of the project. By 2038, all businesses must be operating through the Customs Data Hub.
All in all, these measures aim to make EU customs legislation more future-proof.
ESC will continue to monitor key issues for importers and exporters, such as representation, AEO authorisation, and the definition of “importer.” As experience has shown, much can still change during the trilogue negotiations.