EU – Baltic States, Legislation, Markets and Companies, Transport

Custom services play a central role in policing the EU’s external borders and in facilitating trade.

The customs union is the operational arm of much of the EU's commercial-trade policy measures. In addition, a growing range of government agencies call on customs to enforce their policies at the border.

EU customs in 28 member states handle 16% of world trade, or over two billion tonnes of goods a year with a value of €3,400 billion.  

Background

The EU customs union has provided a stable foundation for economic integration and growth in Europe for over four decades. Customs legislation is an exclusive EU’s competence, i.e. it is decided by the EU institutions. However, the implementation of that legislation falls primarily on the EU member states.

Efficient customs administrations are essential to ensure a level playing field for traders in different EU states and to police the EU’s external borders.

In 2012, the Commission outlined a course of action for a more robust and unified customs union by 2020 in its Communication on the State of the Customs Union. The Communication provided for a reform of its legal framework as well as a vast shift towards digitalisation.

The Union Customs Code (UCC) which came into force in 2013 enables customs to focus more on trade facilitation as well as on security, safety and the enforcement of intellectual property rights. It also improves cooperation between customs authorities and other services as well as sets out custom rules for twenty-first century customs processes.

The new delegated act builds on this by setting out the details of the rules which will apply as from 1 May 2016. It will be supplemented by an additional implementing act, which is being submitted to Member States at the same time and will set out procedural details. The implementing act will be voted by the Customs Code Committee composed of Member states’ representatives.

The Commission consulted extensively with the member states and trade interest groups to prepare the delegated act. It has been working for several years on a major overhaul of customs rules in the EU. The act was adopted well ahead of the 1 May 2016 deadline to allow stakeholders to adapt.

The commission underlined the importance of the new rules: Pierre Moscovici, EU Commissioner for Economic and Financial Affairs, Taxation and Customs, said that a modern and cost-effective customs system could facilitate international trade and increase growth.

He added that efficient custom service could play a vital role in defending the safety and security of European citizens while protecting EU member states' interests.

Delegated act for custom services

The new decision takes the form of a delegated act. This kind of legal act existed de facto for several decades in the Communities; though de jure was introduced in the Treaty of Lisbon in 2009.

Such form of legislative activity gives the Commission power to adopt the technical, non-essential elements of an existing legislation, in this case of the Union Customs Code. The adopted act covers a wide area of customs activity, including:

·                     Simplifications of the customs procedure inward processing which allows the processing of non-Union goods without payment of import duty and other charges to support creation of added value in the EU;

·                     Clearer rules to ensure equal treatment of economic operators in the EU;

·                     Wide-ranging provisions which will allow customs decisions and authorisations to be valid across the EU in the future;

·                     Establishing common data requirements as the basis for new IT systems linking EU member states' customs administrations to ensure a seamless exchange of information;

·                     Improvements in risk management to reinforce the fight against trade in illicit and prohibited goods, terrorism and other criminal activities.

The new delegated act will now be considered by the European Parliament and the Council. In accordance with Article 290 TFEU, both can raise their objections within two months. This period of scrutiny can be extended by a further two months.

For more information see:

http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm;  

= European Commission press release IP-15-5445 “Commission modernises EU customs procedures”, 28 July 2015, in:

http://europa.eu/rapid/press-release_IP-15-5445_en.htm?locale=en.