EU proposes comprehensive overhaul of customs system

Nazim Sheikh

Global Courant 2023-05-17 15:02:29

BRUSSELS

The European Commission on Wednesday proposed the largest revision in the history of the customs union, aimed at simplifying procedures and better aligning with e-commerce.

Paolo Gentiloni, EU Commissioner for the Economy, said at a press conference that this was “the most ambitious and comprehensive reform since the inception of the customs union in 1968”.

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The reform aims to put an end to the complex customs system where traders have to deal with the requirements of 27 different national authorities even though the EU is a customs union.

According to the draft, the EU will establish a new authority responsible for customs and a joint data center to harmonize information from member states.

The newly established EU Customs Authority will coordinate with member states and businesses to better comply with EU standards, including recently adopted requirements, with the exception of products made by forced labor or environmentally damaging products.

The Customs Data Center will harmonize incoming information between national systems and inform them about the movement of goods.

The EU executive body said in a statement that the joint EU data center will gradually “replace existing customs IT infrastructure in EU Member States, saving up to €2 billion ($2.16 billion) in operating costs per year”.

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The reform is intended to be beneficial for traders and they will also be able to use a single platform for notifications.

First, e-commerce platforms gain access to the common platform from 2028, while from 2032 it opens up to all trading companies.

The European Commission estimates that simplified procedures will save businesses up to 2.7 billion euros each year.

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The European Commission said the draft also aims to create “a more modern framework for e-commerce”.

It proposes removing the existing 150 € ($ 162) threshold at which goods are exempt from customs duty.

The EU executive body claims that the current system is “heavily exploited by scammers”, as sellers currently valuate up to 65% of parcels shipped into the EU to avoid import duties.

The new rules will also impose more stringent requirements on e-sellers to prove that their products meet EU safety and sustainability standards, as well as customs duties.

In 2021, the bloc’s trade with other countries totaled 4.3 trillion euros, accounting for 14% of world trade and generating a total customs revenue of 80 billion euros.

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EU proposes comprehensive overhaul of customs system

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