The European Commission has unveiled its proposals for the most ambitious and comprehensive reform of the EU Customs Union since its establishment in 1968. This reform aims to revolutionize EU customs operations with a data-driven approach, simplifying procedures, enhancing efficiency, and ensuring the safety and security of goods entering the EU.
The reform recognizes the challenges faced by EU Customs, including the surge in trade volumes, particularly in e-commerce, the need to comply with a growing number of EU standards at the border, and the evolving geopolitical landscape. By embracing digital transformation, the reform streamlines customs processes, replacing traditional declarations with a smarter, data-led approach to import supervision. It equips customs authorities with the necessary tools and resources to effectively identify and prevent imports that pose risks to the EU, its citizens, and its economy.
One of the key elements of the reform is the establishment of a new EU Customs Authority, which will oversee the EU Customs Data Hub, serving as the engine of the new system. The Data Hub will gradually replace existing customs IT infrastructure in EU Member States, resulting in substantial annual savings of up to €2 billion in operating costs. Additionally, the new Authority will support an improved EU approach to risk management and customs checks.
A groundbreaking aspect of the reform is the partnership between EU Customs and businesses. Under the reformed EU Customs Union, businesses will have the opportunity to input all relevant information about their products and supply chains into a centralized online platform called the EU Customs Data Hub. By leveraging machine learning, artificial intelligence, and human intervention, this cutting-edge technology will provide authorities with a comprehensive overview of supply chains and the movement of goods. Trusted traders, categorized as “Trust and Check” traders, will benefit from streamlined customs procedures and may release their goods into circulation within the EU without active customs intervention.
The EU Customs Data Hub will be open to e-commerce consignments in 2028, followed by other importers on a voluntary basis in 2032. This phased approach will bring immediate benefits and simplifications. A review in 2035 will assess the possibility of extending the Hub’s usage to all traders when it becomes mandatory in 2038.
The reform introduces a more intelligent approach to customs checks, granting customs authorities real-time access to supply chain and production process data. By utilizing artificial intelligence and predictive analytics, EU customs authorities can proactively identify potential risks before goods enter the EU. This targeted approach allows authorities to focus their efforts and resources on preventing the entry of unsafe or illegal goods and upholding EU laws that prohibit goods conflicting with common EU values, such as those related to climate change, deforestation, and forced labor. Furthermore, it ensures proper collection of duties and taxes, benefiting national and EU budgets.
The reform also modernizes customs procedures for e-commerce. Online platforms will play a pivotal role in ensuring compliance with customs obligations for goods sold online into the EU. Platforms will be responsible for collecting customs duties and VAT at the point of purchase, eliminating hidden charges and unexpected paperwork for consumers. This shift of responsibility from individual consumers and carriers to platforms enhances transparency and guarantees that purchases adhere to EU environmental, safety, and ethical standards.
Moreover, the reform eliminates the current threshold that exempts goods valued at less than €150 from customs duty, as it is frequently exploited by fraudsters. By reducing the number of customs duty categories from thousands to just four for low-value goods purchased outside the EU, the calculation process becomes significantly simpler. This simplification aids platforms and customs authorities in managing the vast number of e-commerce purchases entering the EU, estimated at one billion annually, while also mitigating the potential for fraud. The tailored e-commerce regime is projected to generate an additional €1 billion in customs