What is the new Union Customs Code (UCC)?

The new Union Customs Code is a reform initiative by the EU aimed at modernizing customs procedures, especially in light of rising e-commerce activity and geopolitical shifts. It introduces a centralized digital customs system and a new European Customs Authority.

Why did the EU decide to reform its Customs Union?

The reform was driven by the rapid growth of e-commerce and changing geopolitical dynamics, which exposed inefficiencies in the current customs framework and highlighted the need for unified, streamlined customs operations across EU Member States.

What is the European Customs Authority (EUCA)?

The European Customs Authority is a proposed new EU-level institution that will manage and operate the EU Customs Data Hub. This body will help centralize customs data collection and processing, replacing existing national systems.

How will the new EU Customs Data Hub impact importers?

Importers will benefit from a single platform to submit all customs documentation and data, even when goods are being cleared in multiple countries. This should reduce bureaucracy and associated costs.

What does the common position agreement mean for the reform process?

The agreement allows the Council to begin negotiations with the European Parliament. Both institutions must approve the final version of the regulation before it becomes law.

Will the customs reform improve consumer protection?

Yes, one of the reform’s objectives is to enhance consumer protection by ensuring better oversight of goods entering the EU through a more coordinated and data-driven customs framework.

EU Customs Code Reform: Member States Reach Deal

The European Commission announced that EU Member States have reached an important agreement on the common position regarding the new Union Customs Code (UCC). This agreement represents the core element of the broad reform of the EU Customs Union. The tax reform aims to modernize customs procedures and enhance the supervision and control of goods entering and leaving the Customs Union, with a primary focus on e-commerce goods.

Customs Reform Background and Key Elements

In May 2023, the European Commission proposed a new UCC, followed by two years of technical discussions in the Council working groups. Faced with mounting pressure due to a rise in e-commerce and geopolitical changes, the EU recognized the need to transform its Customs Union's ability to protect the single market and unify customs authorities across EU countries.

The key element of the transformation is the establishment of the European Customs Authority (EUCA). The EUCA will be tasked with developing and operating a new EU Customs Data Hub, which will significantly transform how EU countries collect, process, and share customs-related data. Moreover, the new Hub should replace the existing national and trans-European IT systems.

Those who want to import goods into the EU's single market will be able to file all necessary data and documentation on a single platform, even when goods are destined for clearance in multiple EU countries. Therefore, the reform of the customs regulatory framework should contribute to reduced bureaucracy and lower costs for importers, while enhancing consumer protection.

Conclusion

This marks only one of many steps that must be completed before the reform is completed. With the adoption of the common position, the Council may begin discussions with the European Parliament to finalize the text of the regulation. Once a consensus is reached, the final version must be formally approved by both the Council and the Parliament before it can become legally binding and take effect.

Source: European Commission