The Role of the EU Customs Authority after the Customs Reform

In the wake of significant increases in trade volumes and the growing complexity of compliance requirements, the European Commission has proposed a comprehensive customs reform package aimed at modernizing and centralizing EU customs operations. A cornerstone of this reform is the establishment of a new EU customs authority. This blog explores the key functions, benefits, and anticipated impacts of the EU customs authority on the customs landscape.

Establishing the EU customs authority

The European Commission tabled its ambitious customs reform package in May 2023, recognizing the need to address several critical issues. Currently, the EU customs union is hindered by disparate levels of digitalization and varying IT customs environments across Member States, resulting in inefficiencies and heightened administrative costs for traders. These inconsistencies also provide loopholes for fraudulent activities. The proposed reform, therefore, aims to create a more integrated and efficient customs system, with the EU customs authority playing a central role.

The new EU customs authority is set to be established in 2026 and become operational by 2028. This authority will be tasked with the development, operation, and management of a new EU Customs Data Hub—a centralized digital platform designed to streamline customs processes and enhance the overall efficiency of the customs union.

Key functions of the EU customs authority

Development and management of the EU Customs Data Hub: The Customs Data Hub will serve as a single digital interface for all customs data submissions, eliminating the need for traders to navigate multiple national systems. This centralization aims to reduce compliance costs and improve data accuracy and accessibility.

Coordination and capacity building: The authority will coordinate with national customs administrations to harmonize customs operations across the EU. It will collect data to measure the customs union's performance, issue recommendations, and prepare common training materials for customs officers.

Risk Management: Utilizing data from the Customs Data Hub, the authority will develop and implement common EU risk criteria and priority control areas. This centralized risk management approach will enable more effective detection and prevention of customs fraud.

Crisis Management: The authority will establish a crisis management mechanism to handle potential disruptions to the customs union. This includes protocols for deploying customs officers and equipment across Member States during crises to maintain supply chain resilience.

Benefits of the EU customs authority

Enhanced Efficiency: By centralizing customs data and operations, the EU customs authority will significantly reduce administrative burdens for traders. This will streamline the customs process, facilitating quicker and more efficient trade flows.

Cost Savings: The Commission estimates that the centralization of IT costs at the EU level will save Member States over €20 billion in IT expenses and an additional €1 billion in staff time over 15 years.

Fraud Reduction: Centralized data management and risk assessment will enhance the ability to detect and prevent customs fraud, potentially increasing revenue by reducing losses associated with fraudulent activities.

Improved Compliance: The establishment of common training and risk criteria will standardize compliance procedures across the EU, ensuring a more consistent application of customs regulations.

Timeline and implementation

The EU customs authority will be set up by 2026, with operational activities beginning in 2028. The Customs Data Hub is expected to be fully operational by December 2037. Throughout this period, the Commission will conduct regular evaluations of the authority's performance to ensure it meets its objectives and continues to provide value to Member States and traders alike.

The introduction of the EU customs authority represents a pivotal shift towards a more unified and efficient customs system within the EU. By centralizing data management and fostering greater coordination among Member States, the new authority aims to enhance trade efficiency, reduce costs, and combat fraud. As the EU moves towards implementing this comprehensive reform, businesses can look forward to a more streamlined and effective customs process that supports the evolving demands of international trade.

💡 Do you want to read 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 is committed to staying at the forefront of customs developments. If you’d like to learn more about the new EU customs authority, feel free to contact us or keep an eye on our blogs for updates.