Customs reform: Taking the Customs Union to the next level

Summary:

Communication adopted by the European Commission on 17 May 2023, providing an overview to the proposed reform of the European Union's (EU) Customs Union.

Further information:

This reform seeks to establish a more cost-efficient and effective cooperation framework governing the Customs Union, based on a new partnership among customs authorities and between customs and business. It aims to reduce compliance costs for administrations and businesses, and enable EU customs to better protect the financial and non-financial interest of the EU and its Member States as well as the EU's single market.

The proposals adopted by the European Commission alongside this Communication are laid out around two key enablers - an EU Customs Authority and an EU Customs Data Hub. The main function of the first enabler is to pool expertise and competences that are scattered across the EU, to steer, coordinate, and support national customs authorities in the EU. The main function of the second enabler is to be the face and engine of the Customs Union and a prerequisite for strengthening supervision and simplifying procedures.

The draft laws were adopted as follows:

• Proposal for a Regulation establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013;
• Proposal for a Council Regulation amending Regulation (EEC) No 2658/87 as regards the introduction of a simplified tariff treatment for the distance sales of goods and Regulation (EC) No 1186/2009 as regards the elimination of the customs duty relief threshold;
• Proposal for a Council Directive amending Directive 2006/112/EC as regards VAT rules relating to taxable persons who facilitate distance sales of imported goods and the application of the special scheme for distance sales of goods imported from third territories or third countries and special arrangements for declaration and payment of import VAT.

Official

European Commission: DG Taxation and Customs Union: EU Customs Reform https://taxation-customs.ec.europa.eu/customs-4/eu-customs-reform_en

European Commission: Press Release, 17/05/2023: EU Customs Reform: A data-driven vision for a simpler, smarter and safer Customs Union https://ec.europa.eu/commission/presscorner/detail/en/ip_23_2643

European Commission: Questions and Answers: EU Customs Reform (17 May 2023) https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_2644

European Commission: Remarks by Commissioner Gentiloni at the press conference on the EU Customs Union Reform (17 May 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_2812

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News

EurActiv, 17/05/2023: EU Commission presents ‘most ambitious customs reform since 1968’ https://www.euractiv.com/section/economy-jobs/news/eu-commission-presents-most-ambitious-customs-reform-since-1968/

Politico, 17/05/2023: Brussels tries to give broken EU customs some love https://www.politico.eu/article/brussels-tries-to-give-broken-eu-customs-some-love-2/

Reuters, 17/05/2023: EU seeks to simplify customs system, tighten up on e-commerce https://www.reuters.com/world/europe/eu-seeks-simplify-customs-system-tighten-up-e-commerce-2023-05-17/

Euronews, 17/05/2023: Loopholes in the EU's customs union help Russia evade sanctions, says Paolo Gentiloni https://www.euronews.com/video/2023/05/17/loopholes-in-the-eus-customs-union-help-russia-evade-sanctions-says-paolo-gentiloni

Bloomberg, 17/05/2023: EU Customs Reform to Target Online Sellers Like Amazon, Alibaba https://www.bloomberg.com/news/articles/2023-05-17/eu-proposes-major-reforms-to-simplify-the-bloc-s-customs-union

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