Understanding the EU customs union

20-09-2017

In December 2016, the European Commission adopted its long-term plan to strengthen the governance and management of the EU customs union. The customs union, in place since 1968, is a pillar of the single market, and vital to the free flow of goods and services. According to the Commission, a strong customs system helps foster competitive businesses, increases wealth, and also protects against terrorist, health, and environmental threats. The customs union operates under the legal framework of the Union Customs Code (UCC), in force since May 2016. However, while customs rules are the same across the EU, national customs authorities do not always apply them in a consistent manner. The Commission has therefore proposed structural and administrative changes, inter alia, on customs policy monitoring, formulation, and implementation. In addition, the Commission proposes to tackle administrative issues (e.g. application of EU law, competency building for custom officials, aligning new EU-wide IT systems dedicated to customs procedures), and border management coordination. The European Parliament is critical of the differences between customs systems at the national level, in particular regarding customs duties and customs clearance, since these create fragmentation, additional administrative burdens (in particular for small and medium-sized enterprises), and hamper e-commerce. The Parliament suggests, among other things, the creation of more uniform electronic customs requirements and risk-assessment programmes. Parliament has also called on the Commission to present an interim report evaluating EU customs policy by 2017, including a review of the problems, overlaps, gaps, and complaints filed with customs authorities, and customs infringements.

In December 2016, the European Commission adopted its long-term plan to strengthen the governance and management of the EU customs union. The customs union, in place since 1968, is a pillar of the single market, and vital to the free flow of goods and services. According to the Commission, a strong customs system helps foster competitive businesses, increases wealth, and also protects against terrorist, health, and environmental threats. The customs union operates under the legal framework of the Union Customs Code (UCC), in force since May 2016. However, while customs rules are the same across the EU, national customs authorities do not always apply them in a consistent manner. The Commission has therefore proposed structural and administrative changes, inter alia, on customs policy monitoring, formulation, and implementation. In addition, the Commission proposes to tackle administrative issues (e.g. application of EU law, competency building for custom officials, aligning new EU-wide IT systems dedicated to customs procedures), and border management coordination. The European Parliament is critical of the differences between customs systems at the national level, in particular regarding customs duties and customs clearance, since these create fragmentation, additional administrative burdens (in particular for small and medium-sized enterprises), and hamper e-commerce. The Parliament suggests, among other things, the creation of more uniform electronic customs requirements and risk-assessment programmes. Parliament has also called on the Commission to present an interim report evaluating EU customs policy by 2017, including a review of the problems, overlaps, gaps, and complaints filed with customs authorities, and customs infringements.