EU seeks customs reform

The European Union (EU) is preparing to establish a new institution and data center to strengthen the control capacity of customs and reduce paperwork in the face of increased commercial activities.

The EU Commission has announced the package containing new regulations regarding the reform of the “EU Customs Union”.

A profitable and effective cooperation and association framework based on risk management between institutions and companies will be established for the administration of the Customs Union.

In this context, those who carry out commercial activities will present the necessary information for customs in their imports and exports to the new common system called “EU Customs Data Center”.

Shippers and warehousemen will also enter information about the movement of goods in this system. This system will be developed over time and extended to all business activities, including supply chains.

The customs and relevant authorities may intervene in any shipment before loading, entry, transport within the EU or final destination, based on a risk analysis. The data center will open to e-commerce deliveries in 2028 and all other business in 2032.

IT WILL BE MANDATORY IN 2038

The system in question will be mandatory from January 1, 2038. In this way, bureaucratic procedures for companies will be simplified and savings will be achieved. There will be a transition from a declaration-based to a data-based customs system.

Thanks to the simplifications, companies’ compliance costs will be reduced by €2.7 billion per year. At the center of the new system will be the EU Customs Administration and will oversee the EU Customs Data Center.

The EU Customs Authority will assume its functions on January 1, 2028. The new administration will assume responsibilities for risk and crisis management. The data center will replace existing customs information technology infrastructure in EU countries. Thus, up to 2,000 million euros per year will be saved in customs data operation costs.

AI WILL BE USED

Within the system, artificial intelligence will be used to analyze data, monitor and predict problems. With the customs reform, online platforms will be required to comply with all customs obligations for merchandise sold over the internet. This change will shift customs liability from individual consumers to platforms.

The current system, in which goods with a value of less than 150 euros are exempt from customs duties, will also be abolished due to abuse.

The EU Customs Union was established in 1968. The reform aims to solve the customs problems of European countries, including the large increase in trade volumes, especially e-commerce, a rapidly growing number of EU rules .

More than 100 different information systems are used by customs in 27 EU member countries.

The approval of the European Parliament (EP) and member states is required for the proposal to enter into force. (AA)