The reform aims to simplify customs procedures for businesses, particularly for trusted traders, by embracing digital transformation and implementing a data-led approach to import supervision. This will replace traditional declarations with a smarter, more efficient process, EC explains in its press release.
Customs authorities will be equipped with the necessary tools and resources to effectively assess and halt imports that pose risks to the EU, its citizens, and its economy.
The reform responds to current challenges faced by EU Customs, such as increased trade volumes (especially in e-commerce), the need to check EU standards at the border, and shifting geopolitical realities and crises. It aims to make the customs framework suitable for a greener, more digital era while contributing to a safer and more competitive Single Market.
A new EU Customs Authority will oversee an EU Customs Data Hub, which will serve as the engine of the reformed system. The Data Hub will replace existing customs IT infrastructure in EU Member States, resulting in significant cost savings. It will also facilitate improved risk management and customs checks.
The reformed EU Customs Union will establish a partnership with businesses, enabling them to provide comprehensive product and supply chain information through the new EU Customs Data Hub. This technology will offer authorities a holistic view of supply chains and goods movement using machine learning, artificial intelligence, and human intervention.
In some cases where processes and supply chains are transparent, trusted traders known as „Trust and Check” traders may release their goods into circulation within the EU without active customs intervention. This category strengthens the existing Authorised Economic Operators (AEO) program for trusted traders.
The proposed system will provide customs authorities with real-time data, allowing for analysis, monitoring, and prediction of risks using artificial intelligence. This will enable customs authorities to focus resources on stopping unsafe or illegal goods from entering the EU and upholding EU laws on issues such as climate change, deforestation, and forced labour.
The reform places responsibility on online platforms to ensure customs duties and VAT are paid at the time of purchase, eliminating hidden charges and unexpected paperwork for consumers. The current exemption threshold for goods valued at less than €150 will be abolished to prevent exploitation by fraudsters. Customs duty calculation for low-value goods bought from outside the EU will be simplified, resulting in additional customs revenues.
Photo: Marc Mongenet, CC BY-SA 4.0, via Wikimedia Commons
