On 13 March 2024, the European Parliament adopted its first reading position on the proposal from the European Commission to repeal and significantly reform the EU Customs Code (which we originally reported on in our blog available here).
On 17 May 2023, the European Commission published its proposal for the reform of the EU Customs Code, which aims to change the way that EU customs authorities operate, in particular due to the significant growth in e-commerce and the increase in product standards and sanctions in the EU. Amongst others, the proposal focuses on three key areas of reform: (i) the approach to e-commerce, (ii) a simplified procedure for trusted partners, and (iii) digital solutions.
- E-commerce: Due to the increase in consumers purchasing goods directly from third countries online, under the proposed text web platforms will be required to submit information to EU customs authorities within one day regarding goods that will be shipped to the EU. The focus of the EU Authorities in this respect is twofold: allow more time for National Customs Authorities to ensure that the goods imported are meeting the EU safety standards & legal norms and to reduce the percentage of parcels being undervalued upon importation in the EU.
- Trusted partners: Under the proposed text, companies and traders will be able to agree to go through rigorous preliminary checks to gain trusted trade status which would allow them to operate with minimal checks and paperwork.
- Digital solutions: The reform intends to establish a central IT platform (with a Customs Data Hub) that will be used to all European customs authorities to streamline communications and submissions with authorities.
The European Parliament has now completed its first reading of the proposal and adopted a series of amendments. The adopted position will be further reviewed by the new EU Parliament after the European elections in June 2024.
Regarding the Parliament’s adopted position, the rapporteur responsible for handling the proposal, Deirdre Clune, said: “There is a critical need for a revised EU customs system. Not only must it guarantee the safety and compliance of goods entering the EU, but it must also function with utmost efficiency for businesses operating within the single market. The proposed Customs Data Hub is a vital step forward, but its swift implementation, alongside other key reforms, is essential to meet growing challenges.”
The European Parliament press release regarding the first reading position can be found here and the adopted amendments can be found here. We are running a webinar on 14 May 2024, 3.00 – 4.00 pm BST in which we will discuss these developments. To register for this event, please use the link here.
