P8_TC1-COD(2018)0258

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing, as part of the Integrated Border Management Fund, the instrument for financial support for customs control equipment

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 33, 114 and 207 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Acting in accordance with the ordinary legislative procedure (2),

Whereas:

(1) The 2 140 customs offices (3) that are present over the external borders of the European Union need to be properly equipped to ensure the efficient and effective operation of the customs union. The need for adequate and equivalent customs controls is ever more pressing not only by reason of the traditional function of customs to collect revenue but also increasingly by the necessity to significantly reinforce the control of goods entering and exiting Union’s external borders in order to ensure both safety and security. However, at the same time, those controls on the movement of goods across the external borders should not impair but rather facilitate legitimate trade with third countries , in compliance with the safety and security conditions . [Am. 1]

(1a) The customs union is a cornerstone of the European Union, which is one of the largest trading blocks in the world, and is essential for the proper functioning of the single market for the benefit of both businesses and citizens. In its resolution of 14 March 2018 (4) , the European Parliament expressed particular concern regarding customs fraud, which has created a significant loss of income for the Union's budget. The European Parliament reiterated that a stronger and a more ambitious Europe can only be achieved if it is provided with reinforced financial means and called, therefore, for providing continuous support to existing policies, for increasing resources to the Union’ flagship programmes, and for additional responsibilities to be matched with additional financial means. [Am. 2]

(2) There is currently an imbalance in the performance of customs control by Member States. This imbalance is due both to geographic differences between Member States and in their respective capacities and resources , as well as to a lack of standardised customs controls . The ability of Member States to react to challenges generated by the constantly evolving global business models and supply chains depend not only on the human component but also on the availability and proper functioning of modern and reliable customs control equipment . Other challenges, such as the surge of e-commerce, the digitalisation of the controls and inspections records, resilience to cyber-attacks, sabotage, industrial espionage and misuse of data, will also increase demand for better functioning of customs procedures . The provision of equivalent customs control equipment is therefore an important element in addressing the existing imbalance. It will improve equivalence in the performance of customs controls throughout Member States and thereby avoid the diversion of the flows of goods towards the weakest points. All the goods entering the customs territory of the Union should be subject to thorough controls in order to avoid ‘port-shopping’ by custom fraudsters. To ensure that the overall strength is increased as well as convergence in the performance of customs control by Member States, a clear strategy related to the weakest points is required. [Am. 3]

(3) A number of Member States have repeatedly expressed the need for financial support and requested an in-depth analysis of the equipment needed. In its conclusions (5) on customs funding on 23 March 2017, the Council invited the Commission to ‘evaluate the possibility of funding technical equipment needs from future Commission financial programmes and improve coordination and (…) cooperation between Customs Authorities and other law enforcement authorities for funding purposes’. [Am. 4]

(4) Under Regulation (EU) No 952/2013 of the European Parliament and of the Council (6), customs controls are to be understood not only as the supervision of customs legislation but also other legislation governing the entry, exit, transit, movement, storage and end-use of goods moved between the customs territory of the Union and countries or territories outside that territory, and the presence and movement within the customs territory of the Union of non-Union goods and goods placed under the end-use procedure. Such other legislation empowering customs authorities with specific tasks of control includes provisions on taxation, in particular as regards excise duties and value added tax, on the external aspects of the internal market, on the common trade policy and other common Union policies having a bearing on trade, on the overall supply chain security and on the protection of the financial and economic interests of the Union and its Member States.

(5) Supporting the creation of an adequate and equivalent level of customs controls at the Union’s external borders allows maximising the benefits of the customs union. A dedicated Union intervention for customs control equipment correcting current imbalances would moreover contribute to the overall cohesion between Member States. In view of the challenges facing the world, in particular the continued need to protect the financial and economic interests of the Union and its Member States while easing the flow of legitimate trade, the availability of modern and reliable control equipment at the external borders is indispensable.

(6) It is therefore opportune to establish a new Instrument for financial support for customs control equipment that should ensure the detection of practices, such as for example counterfeiting of goods and other illegal commercial practices . Already existing formulas of financial support should be considered. [Am. 5]

(7) As customs authorities of the Member States have been taking up an increasing number of responsibilities, which often extend to the field of security and take place at the external border, ensuring equivalence in carrying out border control and customs control at the external borders needs to be addressed by providing adequate Union financial support to the Member States. It is equally important to promote inter-agency cooperation , while considering cybersecurity, at Union borders as regards controls of goods and controls of persons among the national authorities in each Member State that are responsible for border control or for other tasks carried out at the border. [Am. 6]

(8) It is therefore necessary to establish an Integrated Border Management Fund (‘the Fund’).

(9) Due to the legal particularities applicable to Title V of the TFEU as well as the different applicable legal bases regarding the policies on external borders and on customs control, it is not legally possible to establish the Fund as a single instrument.

(10) The Fund should therefore be established as a comprehensive framework for Union financial support in the field of border management comprising the Instrument for financial support for customs control equipment (‘the Instrument’) established by this Regulation as well as the instrument for financial support for border management and visa established by Regulation (EU) No …/… of the European Parliament and of the Council (7).

(11) This Regulation lays down a financial envelope for the Instrument, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (8), for the European Parliament and the Council during the annual budgetary procedure. To secure budgetary discipline, the conditions as to how the grants will be prioritised should be clear, defined and based on needs that have been identified for the tasks performed by customs points. [Am. 7]

(12) Regulation (EU, Euratom) [2018/XXX] of the European Parliament and of the Council (9) (the ‘Financial Regulation’) applies to this Instrument. It lays down rules on the implementation of the Union budget, including the rules on grants.

(13) Regulation (EU) [2018/XXX] of the European Parliament and of the Council (10) establishes the ‘Customs’ programme for cooperation in the field of customs to support the customs union and customs authorities. In order to preserve the coherence and horizontal coordination of cooperation actions, it is appropriate to implement all of them under one single legal act and set of rules. Therefore, only the purchase, maintenance and upgrade of the eligible customs control equipment should be supported under this Instrument while the Customs programme for cooperation in the field of customs should support related actions, such as cooperation actions for the assessment of needs or training relating to the equipment concerned.

(13a) Customs control equipment financed under this Instrument should meet optimal security, including cybersecurity, safety, environmental and health standards. [Am. 8]

(13b) Data produced by customs control equipment financed under this Instrument should be accessed and processed only by duly authorised staff of the authorities, and should be adequately protected against unauthorised access or communication. Member States should be in full control of that data. [Am. 9]

(13c) Customs control equipment financed under this Instrument should contribute to providing optimal customs risk management. [Am. 10]

(13d) When replacing old customs control equipment by the means of this Instrument, Member States should be responsible for environment friendly disposal of old customs control equipment. [Am. 11]

(14) In addition, and where appropriate, the Instrument should also support the purchase or upgrade of customs control equipment for testing new pieces or new functionalities in operational conditions before Member States start large-scale purchases of such new equipment. Testing in operational conditions should follow up in particular on the outcomes of research of customs control equipment in the framework of Regulation (EU) [2018/XXX] (11).

(15) Most customs control equipment may be equally or incidentally fit for controls of compliance with other legislation, such as provisions on border management, visa or police cooperation. The Integrated Border Management Fund has therefore been conceived as two complementary instruments with distinct but coherent scopes for the purchase of equipment. On the one hand, the instrument for border management and visa established by Regulation [2018/XXX] (12) will exclude equipment that can be used for both border management and customs control. On the other hand, the instrument for financial support for customs control equipment established by this Regulation will not only support financially equipment with customs controls as the main purpose but will also allow its use as well for additional related purposes such as border controls , safety, and security. This distribution of roles will foster inter-agency cooperation as a component of the European integrated border management approach, as referred to in Article 4(e) of Regulation (EU) 2016/1624 (13), thereby enabling customs and border authorities to work together and maximising the impact of the Union budget through co-sharing and inter-operability of control equipment. To ensure that any instrument or equipment financed by the fund is in the permanent custody of the designated customs point that owns the equipment, the act of co-sharing and interoperability between customs and border authorities should be defined as being non-systematic and non-regular. [Am. 12]

(16) By way of derogation from the Financial Regulation, funding of an action by several Union programmes or instruments should be possible in order to allow and support, where appropriate, cooperation and interoperability across domains. However, in such cases, the contributions may not cover the same costs in accordance with the principle of prohibition of double funding established by the Financial Regulation. If a Member State has already been awarded or has received contributions from another Union programme or support from a Union fund for the acquisition of the same equipment, that contribution or support should be listed in the application. [Am. 13]

(16a) The Commission should incentivise joint procurement and testing of customs control equipment between Member States. [Am. 14]

(17) In view of the rapid evolution of customs priorities, threats and technologies, work programmes should not span over long periods of time. At the same time, the need to establish annual work programmes increases the administrative burden for both the Commission and Member States without it being necessary for the implementation of the Instrument. Against that backdrop, work programmes should in principle cover more than one budgetary year. Moreover, to ensure that the integrity of the Union's strategic interests are preserved, Member States are encouraged to consider carefully cybersecurity and the risks to potential exposure of sensitive data outside the Union when tendering for new customs control equipment. [Am. 15]

(18) In order to ensure uniform conditions for the implementation of the work programme under this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (14). [Am. 16]

(19) Although central implementation is indispensable in order to achieve the specific objective of ensuring equivalent customs controls, given the technical nature of this Instrument, preparatory work is required at technical level. Therefore, implementation should be supported by individual assessments of needs that are dependent on national expertise and experience through the involvement of customs administrations of the Member States. Those assessments of needs should be based on a clear methodology including a minimum number of steps ensuring the collection of the required relevant information. [Am. 17]

(20) To ensure regular monitoring and reporting, a proper framework for monitoring the results achieved by the Instrument and actions under it should be put in place. Such monitoring and reporting should be based on quantitative and qualitative indicators measuring the effects of the actions under the Instrument. Member States should ensure a transparent and clear procurement procedure. Reporting requirements should include some detailed information on customs control equipment and procurement procedure beyond a certain cost threshold , and a justification of the expenses . [Am. 18]

(21) Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 (15), there is a need to evaluate this Instrument on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Instrument on the ground.

(22) In order to respond appropriately to evolving policy priorities, threats and technologies, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending this Regulation in order to lay down work programmes, amending the customs control purposes for actions eligible under the Instrument and the list of indicators to measure the achievement of the specific objectives. It is of particular importance that the Commission carries out appropriate and fully transparent consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 19]

(23) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (16), Council Regulation (Euratom, EC) No2988/95 (17), Council Regulation (Euratom, EC) No 2185/96 (18) and Regulation (EU) 2017/1939 (19), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other criminal offences affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (20). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(24) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding. Funding under this Instrument should respect the principles of transparency, proportionality, equal treatment and non-discrimination. [Am. 20]

(25) The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objective of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. Improving the implementation and quality of spending should constitute guiding principles for the achievement of the objectives of the Instrument while ensuring optimal use of financial resources. [Am. 21]

(26) Since the objective of this Regulation, which is to establish a Instrument that supports the customs union and customs authorities, cannot be sufficiently achieved by the Member States alone further to objective imbalances existing at geographical level amongst them, but can rather, by reason of the equivalent level and quality of custom control that a coordinated approach and a centralised funding will help providing, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1 Subject matter 1. This Regulation establishes the Instrument for financial support for customs control equipment (‘the Instrument’), as part of the Integrated Border Management Fund (‘the Fund’) to provide financial support for the purchase, maintenance and upgrade of customs control equipment. 2. Jointly with Regulation [2018/XXX] establishing, as part of the Integrated Border Management Fund, the instrument for financial support for border management and visa (21), this Regulation establishes the Fund. 3. It lays down the objectives of the Instrument, the budget for the period 2021 — 2027, the forms of Union funding and the rules for providing such funding.

Article 2 Definitions For the purposes of this Regulation, the following definitions shall apply: (1) ‘customs authorities’ means the authorities defined in point (1) of Article 5 of Regulation (EU) No 952/2013; (2) ‘customs controls’ means the specific acts defined in point (3) of Article 5 of Regulation (EU) No 952/2013; (3) ‘customs control equipment’ means equipment intended primarily for performing customs controls; (4) ‘mobile customs control equipment’ means any means of transport that, beyond its mobile capacities, is intended itself to be a piece of customs control equipment or is fully equipped with customs control equipment; (5) ‘maintenance’ means preventive, corrective and predictive interventions, including operational and functional checks, servicing, repair and overhaul but excluding upgrading, necessary for retaining or restoring a piece of customs control equipment to its specified operable condition to achieve its maximum useful life; (6) ‘upgrade’ means evolutive interventions necessary for bringing an existing piece of customs control equipment from an outdated to a state-of-the-art specified operable condition.

Article 3 Instrument objectives 1. As part of the Integrated Border Management Fund and with a view to the long-term aim that all customs controls in the Union are standardised , the Instrument has the general objective to support the customs union and customs authorities to protect the financial and economic interests of the Union and its Member States to promote inter-agency cooperation at Union borders as regards controls of goods and persons , to ensure security and safety within the Union and to protect the Union from unfair and illegal trade while facilitating legitimate business activity. [Am. 22] 2. The Instrument has the specific objective of contributing to adequate and equivalent customs controls through the fully transparent purchase, maintenance and upgrade of relevant, state-of-the-art , secure, cyber-resilient, safe, environmental-friendly and reliable customs control equipment. An additional objective is to improve the quality of customs controls throughout Member States to avoid the diversion of goods towards weaker points in the Union. [Am. 23] 2a. The Instrument shall contribute to the implementation of the European Integrated Border Management by supporting interagency cooperation, co-sharing and interoperability of new equipment acquired through the Instrument. [Am. 24]

Article 4 Budget 1. The financial envelope for the implementation of the Instrument for the period 2021 — 2027 shall be EUR 1 149 175 000 in 2018 prices (EUR 1 300 000 000 in current prices). [Am. 25] 2. The amount referred to in paragraph 1 may also cover legitimate and verified expenses for preparation, monitoring, control, audit, evaluation and other activities for managing the Instrument and evaluating its performance and the achievement of its objectives. It may moreover cover likewise legitimate and verified expenses relating to the studies, meetings of experts, information and communication actions, exchange of data between involved Member States in so far as they are related to the specific objectives of the Instrument in support of the general objective , as well as expenses linked to information technology networks focusing on information processing and exchange, including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the Instrument. [Am. 26]

Article 5 Implementation and forms of EU funding 1. The Instrument shall be implemented in direct management in accordance with the Financial Regulation. 1a. When the action supported involves the purchase or upgrade of equipment, the Commission shall set up adequate safeguards and contingency measures to ensure that all the equipment purchased with the support of Union programmes and instruments is put to use by the relevant customs authorities in all relevant cases. [Am. 27] 2. The Instrument may provide funding in any of the forms laid down in the Financial Regulation and in particular by means of grants. 3. When the action supported involves the purchase or upgrade of equipment, the Commission shall set up a coordination mechanism ensuring efficiency and interoperability between all the equipment purchased with the support of Union programmes and instruments , which shall allow for the consultation and participation of relevant Union agencies, in particular the European Border and Coast Guard Agency . The coordination mechanism shall include the participation and consultation of the European Border and Coast Guard Agency to maximise the Union added value in the field of border management. [Am. 28] 3a. When the action supported involves the purchase or upgrade of equipment, the Commission shall set up adequate safeguards and contingency measures to ensure that all the equipment purchased with the support of Union programmes and instruments meets agreed standards on regular maintenance. [Am. 29]

CHAPTER II

ELIGIBILITY

Article 6 Eligible actions 1. In order for actions to be eligible for funding under this Instrument, the actions must comply with the following requirements: (a) implement the objectives referred to in Article 3; (b) support the purchase, maintenance and upgrade of customs controls equipment that has one or more of the following customs control purposes: (1) non-intrusive inspection; (2) indication of hidden objects on humans; (3) radiation detection and nuclide identification; (4) analysis of samples in laboratories; (5) sampling and field analysis of samples; (6) handheld search. Annex 1 lays down an indicative list of customs control equipment that may be used to achieve the customs control purposes referred to in points (1) to (6). 2. By way of derogation from paragraph 1, in duly justified cases, the actions may also cover the fully transparent purchase, maintenance and upgrade of customs controls equipment for testing new pieces or new functionalities in operational conditions. [Am. 30] 3. The Commission is empowered to adopt delegated acts in accordance with Article 14 to amend the customs control purposes set out in point (b) of paragraph 1 as well as Annex 1 where such review is considered necessary and in order to stay up to date with technological developments, changing patterns in smuggling of goods and with new, smart and innovative solutions for customs control purposes . [Am. 31] 4. Customs control equipment financed under this Instrument should primarily be used for customs controls, but may be used for purposes additional to customs controls, including for control of persons in support of the national border management authorities and investigation to comply with the Instrument's general and specific objectives set out in Article 3 . [Am. 32] 4a. The Commission shall incentivise joint procurement and testing of customs control equipment between Member States. [Am. 33]

Article 7 Eligible entities By way of derogation from Article 197 of the Financial Regulation, the eligible entities shall be the customs authorities of Member States where they provide the information necessary for the assessments of needs as set out in Article 11(3).

Article 8 Co-financing rate 1. The Instrument may finance up to 80 % of the total eligible costs of an action. 2. Any funding in excess of that ceiling shall only be granted in duly justified exceptional circumstances. 2a. Funding in excess of that ceiling may be granted in cases of joint procurement and testing of customs control equipment between Member States. [Am. 34] 2b. The exceptional circumstances referred to in paragraph 2 may include purchasing of new customs control equipment and submitting it to the technical equipment pool of the European Border and Coast Guard. Admissibility of the customs control equipment to the technical equipment pool shall be ascertained in accordance with Article 5(3). [Am. 35]

Article 9 Eligible costs All the following costs shall not be related to actions referred to in Article 6 shall be eligible for funding under the Instrument , with the exception of : [Am. 36] (a) costs related to the purchase of land; (aa) costs relating to training or the upgrading of skills necessary for the use of the equipment; [Am. 37] (b) costs relating to infrastructure, such as buildings or outdoor facilities, as well as to furniture; (c) costs associated with electronic systems, with the exception of software and software updates directly necessary to use the customs control equipment and with the exception of the electronic software and programming necessary to inter-link existing software with the customs control equipment ; [Am. 38] (d) costs of networks, such as secured or unsecured communication channels, or subscriptions , with the exception of networks or subscriptions directly necessary to use the customs control equipment ; [Am. 39] (e) costs of transport means, such as vehicles, aircrafts or ships, with the exception of mobile customs control equipment; (f) costs of consumables, including reference or calibration material, for customs control equipment; (g) costs relating to personal protective equipment.

CHAPTER III

GRANTS

Article 10 Award, complementarity and combined funding 1. Grants under the Instrument shall be awarded and managed in accordance with Title VIII of the Financial Regulation. 2. In accordance with Article 195(f) of the Financial Regulation, grants shall be awarded without a call for proposals to the eligible entities referred to in Article 7. 3. By way of derogation from Article 191 of the Financial Regulation, an action that has received a contribution from the Customs programme for cooperation in the field of customs established by Regulation (EU) [2018/XXX] (22) or from any other Union programme may also receive a contribution under the Instrument, provided that the contributions do not cover the same costs. The rules of each contributing Union programme shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

CHAPTER IV

PROGRAMMING, MONITORING AND EVALUATION

Article 11 Work programme 1. The Instrument shall be implemented by work programmes referred to in Article 110(2) of the Financial Regulation. 2. The work programmes shall be adopted by The Commission by means of an implementing act. That implementing act shall be adopted is empowered to adopt delegated acts in accordance with the examination procedure referred to in Article 15 14, amending Annex 2a in order to lay down work programmes . [Am. 40] 3. The preparation of the work programmes referred to in paragraph 1 shall be supported by an individual assessment of needs, which shall consist of the following at a minimum: [Am. 41] (a) a common categorisation of border crossing points; (b) an exhaustive inventory of available and functional customs control equipment; [Am. 42] (c) a common definition of a minimum and an optimal technical standard of customs control equipment by reference to the category of border crossing points; and [Am. 43] (ca) an assessment of an optimal level of customs control equipment by reference to the category of border crossing points; and [Am. 44] (d) a detailed estimate of financial needs depending on the size of customs operations and the relative workload . [Am. 45] The assessment of needs shall result from actions carried out under the Customs 2020 programme established by Regulation (EU) No 1294/2013 of the European Parliament and of the Council (23) or under the Customs programme for cooperation in the field of customs established by Regulation (EU) [2018/XXX] (24) and shall be updated regularly and at a minimum every 3 years.

Article 12 Monitoring and reporting 1. Indicators to report on In compliance with its reporting requirement pursuant to point (e)(i) of Article 38(3) of the Financial Regulation, the Commission shall present to the European Parliament and the Council information on the performance of the Programme. The Commission’s reporting on performance shall include information on both progress of the Instrument towards the achievement of the general and specific objectives set out in Article 3 are set out in Annex 2 and shortfalls . [Am. 46] 2. Indicators to report on the progress of the Instrument towards the achievement of the general and specific objectives in Article 3 are set out in Annex 2. To ensure effective assessment of progress of the Instrument towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 14 to amend Annex 2 to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework in order to provide the European Parliament and the Council with updated qualitative as well as quantitative information on performance of the Programme . [Am. 47] 3. The performance reporting system shall ensure that data for monitoring the implementation and results of the Instrument are comparable and complete as well as collected efficiently, effectively, and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds. The Commission shall provide the European Parliament and the Council with reliable information on the quality of the performance data used. [Am. 48] 4. The reporting requirements referred to in paragraph 3 shall include at least the annual communication to the Commission of the following information where the cost of a piece of customs control equipment exceeds EUR 10 000 exclusive of taxes: (a) commissioning and decommissioning dates of the customs control equipment; (b) statistics on the use of the customs control equipment; (c) information on results from the use of the customs control equipment. (ca) the presence and condition five years after commissioning of items of equipment funded from the Union budget; [Am. 49] (cb) information on instances of maintenance of the customs control equipment; [Am. 50] (cc) information on the procurement procedure; [Am. 51] (cd) justification of the expenses. [Am. 52]

Article 13 Evaluation 1. Evaluations of actions funded under the Instrument and referred to in Article 6 shall assess the Instrument's results, impact and effectiveness, and shall be carried out in a timely manner to feed into ensure their efficient use in the decision-making process. [Am. 53] 2. The interim evaluation of the Instrument shall be performed once there is sufficient information available about the implementation of the Instrument, but no later than four three years after the start of the implementation of the Instrument. [Am. 54] The interim evaluation shall present findings necessary to make a decision about a follow-up to the Programme beyond 2027 and its objectives. [Am. 55] 3. At the end of the implementation of the Instrument, but no later than four three years after the end of the period specified in Article 1, a final evaluation of the Instrument shall be carried out by the Commission. [Am. 56] 4. The Commission shall communicate the conclusions of the evaluations, accompanied by its observations and lessons learned , to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. [Am. 57] 4a. The Commission shall include annual partial evaluations in its report ‘Protection of the European Union's financial interests — Fight against fraud’. [Am. 58]

CHAPTER V

EXERCISE OF THE DELEGATION AND COMMITTEE PROCEDURE

Article 14 Exercise of the delegation 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Articles 6(3) , 11(2) and 12(2) shall be conferred on the Commission until 31 December 2028. [Am. 59] 3. The delegation of power referred to in Articles 6(3) , 11(2) and 12(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. [Am. 60] 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. 5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 6. A delegated act adopted pursuant to Articles 6(3) , 11(2) and 12(2) shall enter into force if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 61]

Article 15 Committee procedure 1. The Commission shall be assisted by the ‘Customs Programme Committee’ referred to in Article 18 of Regulation (EU) [2018/XXX] (25). 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. [Am. 62]

CHAPTER VI

TRANSITIONAL AND FINAL PROVISIONS

Article 16 Information, communication and publicity 1. The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public , thereby showing the Union added value and aiding the data gathering efforts of the Commission in order to enhance budgetary transparency . [Am. 63] 2. In order to ensure transparency, the Commission shall implement regularly provide information and communication actions to the public relating to the Instrument, and its actions and results,. Financial resources allocated to the Instrument shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to referring to, inter alia, the work programmes referred to in Article 3 11 . [Am. 64]

Article 17 Transitional provisions If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses provided for in Article 4(2), to enable the management of actions not completed by 31 December 2027.

Article 18 Entry into force This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at …, For the European Parliament The President For the Council The President

(1) OJ C 62, 15.2.2019, p. 67.

(2) Position of the European Parliament of 16 April 2019.

(3) Annex of the Annual 2016 Report of the Customs Union Performance available on: https://ec.europa.eu/info/publications/annual-activity-report-2016-taxation-and-customs-union_en.

(4) P8_TA(2018)0075: The next MFF: Preparing the Parliament’s position on the MFF post-2020

(5) https://www.consilium.europa.eu/media/22301/st09581en17-vf.pdf and http://data.consilium.europa.eu/doc/document/ST-7586-2017-INIT/en/pdf.

(6) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

(7) COM(2018)0473.

(8) Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (OJ C 373, 20.12.2013, p. 1).

(9) COM(2016)0605.

(10) COM(2018)0442.

(11) COM(2018)0435.

(12) COM(2018)0473.

(13) Regulation (EU) 2016/1624 of the European Parliament and of the Council of 14 September 2016 on the European Border and Coast Guard and amending Regulation (EU) 2016/399 of the European Parliament and of the Council and repealing Regulation (EC) No 863/2007 of the European Parliament and of the Council, Council Regulation (EC) No 2007/2004 and Council Decision 2005/267/EC (OJ L 251, 16.9.2016, p. 1).

(14) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

(15) Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016 (OJ L 123, 12.5.2016, p. 1).

(16) Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

(17) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

(18) Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

(19) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).

(20) Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

(21) COM(2018)0473.

(22) COM(2018)0442.

(23) Regulation (EU) No 1294/2013 of the European Parliament and of the Council of 11 December 2013 establishing an action programme for customs in the European Union for the period 2014-2020 (Customs 2020) and repealing Decision No 624/2007/EC (OJ L 347, 20.12.2013, p. 209).

(24) COM(2018)0442.

(25) COM(2018)0442.