EU Customs Data Hub: the Engine of the New Customs Union

In May 2023, the European Commission unveiled an ambitious plan for comprehensive customs reform, with the establishment of the EU Customs Data Hub at its core. This new data hub is envisioned as "the face and the engine" of the revitalized customs union, consolidating what is currently a fragmented digital landscape for customs formalities. Let's explore the key features, benefits, and expected impact of the EU Customs Data Hub on the customs landscape.

Establishment of the EU Customs Data Hub

The EU Customs Data Hub will be developed, implemented, and maintained by the European Commission. The Commission will have the authority to adopt delegated acts, enabling the data hub to adapt to the evolving needs of customs policy. It will also be empowered to process personal data and commercially sensitive information to carry out tasks related to risk management, enforcement of rules, and ensuring the uniform application of customs legislation.

Access to data

In addition to the Commission and national customs authorities, other entities will have access to the data stored in the hub, including personal data and commercially sensitive information. These entities include OLAF, EPPO, Europol, member states' tax authorities, market surveillance authorities, Frontex, and authorities related to food and feed law.

Data storage and management

Data in the EU Customs Data Hub will be retained for a maximum of 10 years, as proposed. This contributes to transparency as customs authorities are required to make customs legislation, general administrative decisions, and application forms freely available, where possible without charge and via the internet.

Implementation timeline

The implementation of the EU Customs Data Hub will occur gradually over the next 15 years. Starting from 2028, the hub will initially be limited to e-commerce activities. By 2032, all traders will have the option to use the hub, with mandatory use scheduled from 2038 (Article 265).

Simplification of procedures and cost reduction

One of the primary benefits of the EU Customs Data Hub is the ability to submit customs information directly through a unified interface, instead of dealing with multiple national systems. This centralization not only streamlines the reporting process for traders but also significantly reduces compliance costs. Information can be entered once and reused for future import or export transactions, ensuring a consistent and cost-effective approach.

EU-wide risk analysis

Another crucial aspect of the EU Customs Data Hub is its capability to conduct EU-wide risk analyses. By leveraging centralized data, customs authorities and other relevant entities such as OLAF, Europol, and national authorities can collectively evaluate risks and develop control strategies. This collaborative approach not only enhances security at the EU's external borders but also provides more efficient protection against customs fraud, smuggling, and violations of standards.

Simplified customs formalities

The EU Customs Data Hub serves not only as the 'engine' of the customs union but also as a critical enabler of the industrial data revolution within EU customs practices. Through centralization, digitalization, and enhanced cooperation among member states, the hub not only increases efficiency but also safeguards the integrity of customs data for a safer and more streamlined trading environment.

For businesses engaged in international trade, the EU Customs Data Hub offers a clear path to simplified customs formalities and reduced operational costs, while simultaneously protecting EU borders against potential risks and threats. With its ambitious goals, the EU Customs Data Hub heralds a new phase in EU customs policy, aimed at a resilient and advanced approach to customs management.

💡 Do you want to know more about the other provisions of the EU customs reform? Then read our article: EU customs reform: a centralised future for trade compliance 

Gateway Software Services remains committed to staying ahead in these developments. For more information about the new EU Customs Data Hub, feel free to contact us or follow our blogs for updates.