EU Customs Reform First Status Report Published

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the European Commission tabled a customs reform package on 17 May 2023. Along with a number of other provisions, key to the reform would be the establishment of an EU customs authority, which would oversee a new customs data hub.

The proposal is subject to the ordinary legislative procedure, requiring the support of both the Council of the EU and the European Parliament, following consultation of the European Economic and Social Committee. Within the Parliament, the Committee on Internal Market and Consumer Protection (IMCO) is working on the file.

'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.  [Briefing

As part of the overall EU customs reform, on 17 May 2023 the Commission tabled a proposal for the establishment of an EU customs authority and a customs data hub, accompanied by an impact assessment. The EPRS has published a detailed analysis of the Commission's impact assessment.

The customs data hub would serve as a single centralised IT environment, thereby sparing traders the need to interact with 27 different IT environments.

Next to the benefits for traders, the centralised data hub would also ensure the integrity, traceability and non-repudiation of the data for customs authorities, thereby strengthening customs control and the fight against customs fraud, smuggling and breaching of standards.

 A new EU customs authority would be set up to develop, operate and manage the customs data hub. It would focus on coordination between national customs administrations, capacity building, data management (regarding the customs data hub) and risk coordination

To align the VAT and customs treatment of imported goods, the Commission proposes to remove the €150 threshold below which goods are exempt from customs duties, thereby making all imported goods subject to both VAT and customs duties

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