EU to Overhaul Customs Rules as E-commerce Growth Strains the System

Last week, the Council of the European Union reached a common position on the need for a reform of the EU customs framework. The aim of this amendment is to meet new trade challenges, such as the increasing volume of parcels entering the European Union through online trade.

The Community body’s position thus opens the door to inter-institutional negotiations between the Council and the European Parliament. Both chambers will have to reach a common text, approved by the two bodies, which will determine the new customs rules within the territory.

“In the face of increased global challenges and trends, the borders of the European Union urgently need more modern tools to protect the single market,“ said Andrzej Domański, Polish Minister of Finance, the country that chaired the Council until today.

The Council of the European Union stresses the need for more modern tools to protect the single market

For the time being, the body has already published a number of key issues that it will prioritize when establishing a new framework, the first of which is the establishment of a new decentralized customs agency, which will enable risk management at EU level and support the work of national customs.

In addition, the Council will set up a customs data center, an online environment covering the entire Union. The platform will make it possible to interact with customs and strengthen data integrity, traceability and customs controls. Finally, the development of a “more modern” approach to e-commerce is envisaged.

The location of the headquarters of the new customs authority is still to be discussed, as well as other aspects such as the design of processing fees.