Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing an action programme for customs in the European Union for the period 2014-2020 (Customs 2020) and repealing Decision N°624/2007/EC
Date: 2012-08-29
Institutions: European Commission
Subjects: EU programme, customs harmonisation, customs regulations, economic support, information system, single market

EUROPEAN COMMISSION 

Brussels, 29.8.2012  
COM(2012) 464 final 

2011/0341/a (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing an action programme for customs in the European Union for the period 
2014-2020 (Customs 2020) and repealing Decision N°624/2007/EC 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  29  June  2011,  the  Commission  adopted  a  proposal  for  the  next  Multi-Annual  Financial 
Framework  for  the  period  2014-20201:  a  budget  for  delivering  the  Europe  2020  Strategy 
proposing  among  others  a  new  Customs  programme.  The  Customs  2020  programme  will 
contribute  to  the  Europe  2020  Strategy  for  smart,  sustainable  and  inclusive  growth2,  by 
strengthening the functioning of the customs union. 

The  customs  union  protects  the  financial  interests  of  the  Union  and  its  Member  States 
collecting  duties,  fees  and  taxes3.  It  requires  that  goods  originating  from  third  countries 
comply  with  Union  legislation  before  they  can  move  around  freely  within  the  Union.  This 
implies  the  management  of  large  trade  volumes  on  a  daily  basis  –  handling  7  customs 
declarations every second - requiring customs to strike a balance between the facilitation of 
trade for business and the protection of citizens against risks to their safety and security. This 
intense  operational  cooperation  between  customs 
can  only  be  achieved 
administrations  of  the  Member  States,  between  them  and  other  authorities,  with  trade  and 
other third parties. 

through 

The  proposed  programme  will  support  the  cooperation  mainly  between  the  customs 
authorities  but  also  with  other  parties  concerned.  It  is  the  successor  programme  of  the 
Customs 2013 programme which ends on 31 December 2013. The proposed programme will 
support  customs  cooperation  in  the  Union  clustered  around  human  networking  and 
competency building, on the one hand, and IT capacity building on the other hand. The first 
cluster  allows  for  the  exchange  of  good  practices  and  operational  knowledge  amongst  the 
Member  States  and  incidentally  other  countries  participating  in  the  programme.  The  latter 
enables the programme to fund appropriate IT infrastructure and systems that allow customs 
administrations  in  the  Union  to  evolve  to  fully-fledged  e-administrations.  The  main  added-
value of the programme is generated by enhancing the capacity of Member States in raising 
revenue and managing increasingly complex trade flows, while cutting costs in developing the 
tools for these purposes. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Consultations and expertise 

2.1. 
In  the  context  of  the  midterm  evaluation  of  the  Customs  2013  programme4,  a  contractor 
analysed  the  effectiveness,  efficiency,  relevance  and  value  added  of  the  programme. 
Monitoring data available from the different activities was used and consultations with trade 
representatives were carried out. 

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2 
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4 

COM(2011)500 Final of 29 June 2011, A budget for Europe 2020. 
COM(2010) 2020 final of 3 March 2010: A strategy for smart, sustainable and inclusive growth. 
In 2010, approximately 12.3 % (15.7 billion euro) of the EU budget was derived from traditional own 
resources.  Directorate  General  for  Budget,  Thematic  Report  on  the  customs  control  strategy  in  the 
Member States — Control of traditional own resources, p3. 

Customs 2013 midterm evaluation: 
http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/customs2013_
mid_term_report_en.pdf 

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Another  contractor  carried  out  a  study  of  the  possible  framework  of  the  future  Customs 
programme5: 
including  a 
its  challenges,  objectives  and  possible  policy  options, 
comprehensive analysis of future challenges, structural problems and possible improvements 
to  the  functioning  of  the  customs  union.  For  the  latter,  consultations  were  carried  out  with 
customs  experts  at  different  levels.  The  findings  of  this  study  were  discussed  with  the 
representatives  of  the  participating  countries  in  a  workshop  organised  in  July  2011.  In 
preparation  of  this  workshop,  a  roundtable  was  organised  in  spring  2011  in  the  relevant 
programme  Committee6  meeting  where  participating  countries  were  asked  to  identify  the 
main  strengths  of  the  programme  and  how  the  efficiency  of  the  programme  could  be 
improved. 

Considering the importance of the activities related to the exchange of information, a separate 
study was carried out on the future implementation strategy for the exchange of information. 
This  study  was  presented  in  a  workshop  for  Chief  Information  Officers  of  customs 
administrations in June 2011. 

An  impact  assessment  was  prepared  analysing  the  continuation  of  the  Customs  2013 
programmes and approved by the Impact Assessment Board on 22 September 2011. 

Recommendations  for  design  and  further  improvements  of  the  programme  were  taken  on 
board  in  the  development  of  the  future  programme  proposal.  The  programme  proposal 
includes new tools, notably regarding cooperation on specific operational tasks. Measures are 
taken  to  improve  the  distribution  of  the  results  of  the  programme  activities  using  online 
collaboration methods and to better monitor the outputs of the programme.  

2.2. 

Impact assessment 

Considering the overall policy context and problems ahead for customs in the next decade, a 
number  of  policy  options  has  been  analysed  and  compared  in  the  impact  assessment 
accompanying the present programme.  

(1) 

(2) 

(3) 

(4) 

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6 
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Baseline: continuing the programme with the current objectives and design.  

No  continuation  of  the  programme:  the  programme  would  be  discontinued  and  EU 
funding  will  no  longer  be  provided  for  IT  tools,  joint  actions  or  training  activities 
supporting cooperation in the customs area. 

Increased  support  to  EU  legal  obligations  such  as  the  Modernised  Customs  Code 
(MCC):  This  policy  option  would  extend  the  baseline  scenario  tailoring  the 
programme to the new needs deriving from the evolving customs union environment, 
including  the  Union  Customs  Code  (UCC)7.  This  option  covers  the  deployment  of 
new IT systems as defined in EU customs legislation, gradually introducing a shared 
development model for the IT systems and modernising the underlying governance, 
architecture and technology.  

Increased support to EU legal obligations and financial support for technical capacity 
building: Besides the components of the previous option, this option would include a 
financial  support  scheme  allowing  Member  States  to  request  support  to  acquire 
equipment  to  control  land,  sea  or  air  borders,  for  instance  scanners  or  laboratory 

DELOITTE, The future business architecture for the Customs Union and Cooperative Model in the 
Taxation Area in Europe.  
Minutes of the 9th Customs Committee meeting on 11 April 2011. 
Proposal for a regulation laying down the Union Customs Code, COM(2012)64 of 20 February 2012. 

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(5) 

equipment. This would support Member States to meet the demands for speeding up 
and streamlining controls in the context of evolving technologies.  

Increased support to EU legal obligations with a maximised shared IT environment: 
Besides  the  components  of  option  3,  this  option  supports  EU  customs  to  take  the 
advantage  of  full  scale  shared  development  and  operation  of  the  European  IT 
systems  to  implement  EU  customs  legislation  such  as  the  MCC  and  other  customs 
related  legislations.  This  option  would  ensure  enhanced  support  to  the  public 
authorities  to  develop  and  deploy  all  the  systems  necessary  for  a  pan-European 
electronic customs environment and to business to connect to those systems.  

The impact assessment identified option 3 "Increased support to EU legal obligations such 
as  the  Modernised  Customs  Code  (MCC)"  as  the  preferred  option.  It  is  in  line  with  the 
proposal  for  a  new  budget  for  Europe  2020  and  scores  best  on  acceptability  by  Member 
States.  The  option  "Increased  support  to  EU  legal  obligations  and  financial  support  for 
technical  capacity  building"  has  not  been  retained  since  the  acquisition  of  equipment 
expressed  in  the  technical  capacity  building  component  could  be  co-funded  through  other 
programmes including Regional Structural Funds while ensuring coherence with the priorities 
of the proposed Customs 2020 programme. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The  Customs  2020  proposal  is  based  on  article  33  of  the  Treaty  on  the  Functioning  of  the 
European  Union  (TFEU)  which  calls  for  action  by  the  European  Union  with  regard  to 
customs cooperation and the EU customs union.  

3.2. 

Subsidiarity and Proportionality 

Action at Union level rather than at national level is necessary for the following reasons: 

•  The  customs  union  is  an  exclusive  competence  of  the  Union.  By  transferring  their 
powers  to  the  Union,  Member  States  ipso  facto  agreed  that  actions  in  the  customs  area 
will be better implemented at Union level. However, the Union legal framework in itself 
does  not  ensure  sufficiently  the  proper  functioning  of  the  customs  union.  It  should  be 
complemented by supporting measures as provided by the Customs programme in order to 
ensure that EU customs legislation is applied in a convergent and harmonised way. 

•  Many of the activities in the customs area are of a cross-border nature, involving and 
affecting  all  27  Member  States,  and  therefore  they  cannot  be  effectively  and  efficiently 
delivered  by  individual  Member  States.  EU  action  is  needed  to  underpin  the  European 
dimension  of  customs  work,  to  avoid  internal  market  distortions  and  to  support  the 
effective protection of the EU external borders. 

• 

In  this  regard,  EU  action  is  justified  to  ensure  the  proper  functioning  and  further 
development of the customs union and its common regulatory framework, as it has been 
shown to be the most efficient and effective EU response to shortcomings and challenges 
in implementing the EU customs union and customs cooperation.  

•  From  an  economic  point  of  view,  action  at  EU  level  is  much  more  efficient.  The 
backbone  of  the  customs  cooperation  is  a  highly  secured  dedicated  communication 
network.  It  interconnects  national  customs  administrations  in  approximately  5  0008 

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Customs and taxation connection points taken together 

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connection  points.  This  common  IT  network  ensures  that  every  national  administration 
only needs to connect once to this common infrastructure to be able to exchange any kind 
of information. If such an infrastructure were not available, Member States would have to 
link 26 times to the national systems of each of the other Member States. 

The Commission shall, for the purpose of implementing the programme, according to Article 
17  TEU,  exercise  coordinating,  executive  and  management  functions,  as  laid  down  in  the 
Treaties.  The  Customs  2020  Programme  is  therefore  in  line  with  the  principles  of 
subsidiarity and proportionality (as set out in Art. 5 of the Treaty of the European Union 
(TEU). 

3.3. 

Instrument 

In line with the conclusion of the relevant impact assessments, EU intervention by means of 
a funding programme is appropriate. Taking into account the positive feedback resulting from 
the  midterm  evaluation  of  the  Customs  2013  programme,  a  successor  Customs  2020 
programme is being proposed by the Commission. 

In line with the Commission legislative policy adopted in the framework of the Multi-Annual 
Financial Framework, the successor funding programme is proposed as a regulation.  

4. 

BUDGETARY IMPLICATION 

The  timing  of  the  review  of  EU  funding  programmes  is  linked  to  the  proposal  for  a  new 
Multiannual  Financial  Framework,  as  amended  on  6  July  20129.  In  accordance  with  this 
proposal, this Regulation on the Customs 2020 programme contains a budgetary framework 
of EUR 548.080.000 (in current prices) for the period of 2014-2020. 

The Customs 2020 programme will be implemented by means of a direct central management 
mode  and  in  a  priority-based  manner.  Work  programmes  are  established  –together  with  the 
stakeholders- stipulating the priorities for a specific period. 

5. 

OPTIONAL ELEMENTS 

5.1. 

Annotations to specific legal provisions 

5.1.1.  Chapter I: General Provisions 

The  scope  of  the  programme  is  specifically  oriented  towards  the  functioning  of  the  EU 
customs union. It will be open for participation to the Member States, Candidate Countries 
and potential Candidates. In line with the overall Union policy in this respect, countries of the 
European Neighbourhood Policy will also have the possibility to take part in the programme 
under  certain  conditions.  Finally,  'external  experts'  might  also  participate  in  specific  actions 
(e.g.  representatives  of  other  authorities,  trade,  national  and  international  organisations,  and 
possibly other experts), if required to realise the programme objectives. 

The objectives of the Customs 2020 programme address the identified problems and expected 
challenges for customs in the next decade. The overarching objective of the programme is to 
strenghten the internal market through an efficient and effective customs union. 

To provide an adequate answer to the future challenges in the customs area in the Union, the 
following specific objective has been defined for the programme: to support the functioning 
of the customs union, in particular through cooperation between participating countries, their 

9  

COM(2012) 388 final 

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customs  authorities,  other  competent  authorities,  their  officials  and  external  experts.  The 
programme will have the following priorities: 

1. 

2. 

3. 

4. 

5. 

6. 

to  support  the  preparation,  coherent  application  and  effective  implementation  of 
Union  law,  with  a  view  of  strengthening  the  customs  union  in  terms  of  efficiency, 
effectiveness and uniformity. 

to strengthen the competitiveness of European businesses through the facilitation of 
legitimate  trade,  the  reduction  of  compliance  costs  and  administrative  burden,  and 
the protection against unfair competition,  

to support customs in protecting citizens, safety and security and the environment. 

to  ensure  the  protection  of  the  financial  and  economic  interests  of  the  European 
Union and the Member States; 

to  contribute  to  the  efficient  functioning  of  customs  authorities  by  improving  their 
administrative capacity, 

to  fight  fraud  and  to  enhance  competitiveness,  safety  and  security  through 
cooperation  with  international  organisations,  third  countries,  other  governmental 
authorities, economic operators and their organisations, 

5.1.2.  Chapter II: Eligible actions 

The types of actions considered eligible for programme funding are similar to the ones under 
the current programme, namely: 

• 

• 

• 

Joint  Actions  pursuing  the  exchange  of  knowledge  and  good  practice  between 
customs officials of the participating countries; 
European Information Systems10 facilitating the exchange of information and access 
to common data;  

Training  activities  leading  to  human  competency  building  for  customs  officials 
across Europe. 

Modifications have been introduced in certain categories of actions. 

• 

The Customs 2020 programme will include some new joint action tools:  

• 

• 

• 

Expert  teams  are  structured  forms  of  cooperation,  pooling  expertise  and/or 
addressing  specific  operational  activities.  They  can  be  set  up  with  a  non-
permanent  or  permanent  character  and  could  receive  support  such  as  online 
collaboration  services,  administrative  assistance  and 
infrastructure  and 
equipment facilities to underpin the realisation and success of an action. 

Actions  for  public  administration  capacity  building  will  support  customs 
authorities that face  particular difficulties, be it lacking knowledge, expertise, 
organisational or any other deficiencies which can be overcome through tailor-
made  support  actions  provided  by  fellow  countries  and  or  Commission 
officials. 

Benchmarking  activities  and  steering  groups  are  no  longer  explicitly 
mentioned in the list of Joint Actions since these can be considered as project 
groups with a particular purpose respectively identification of best practices to 

10 

Previously called Trans European IT Systems 

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• 

reveal  improvement  opportunities  or  the  coordination  and  steering  of 
programme activities in a given area. 

As regards the European Information Systems,  the new  programme  defines "Union 
components"  as  IT  assets  and  services  which  concern  some  or  all  of  the  Member 
States and are owned or acquired by the Commission. These Union components are 
described  in  point  2  of  the  Annex  of  the  proposed  legal  act.  The  "national 
components"  are  all  components  which  are  not  "Union  components".  They  are 
developed, installed and operated by Member States, and thus subject to the funding 
and responsibility of Member States.  

The  redefinition  of  Union  components  should  be  seen  in  the  light  of  the  changing 
practice of IT systems development. Currently each Member State is responsible for 
the  implementation  of  its  national  systems  according  to  common  specifications, 
resulting in  27 developments for  each system, 27 trader interfaces, 27 schedules of 
development, 27 sets of project related or operational difficulties, etc. In particular in 
the  light  of  the  economic  and  financial  crisis,  the  Commission  considers  that  the 
development of IT systems should be done more efficiently. 

This evolution aims at improving the consistency of data and application of rules by 
gradually  moving  towards  more  shared  IT  development  (knowledge,  data,  IT 
components). It will bring improved working methods for instance through business 
process  modelling,  better  quality  specifications  but  also  will  bring  more 
standardisation  for  instance  harmonising  interfaces  for  traders.  The  new  approach 
towards  Union  components  will  limit  the  risk  for  divergent  development  and 
deployment plans. It also provides additional means to control the finalisation of the 
project  as  common  plans  avoid  that  the  slowest  member  in  the  development  chain 
determines the entry in operation of the entire project. 

5.1.3.  Chapter IV: Implementation 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing  powers  should  be  conferred  on  the  Commission.  As  such  an  annual  work 
programme  will  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 5 of Regulation (EU) No 182/2011 of the European Parliament and the Council of 16 
February  2011  laying  down  the  rules  and  general  principles  concerning  mechanisms  for 
control by the Member States of the Commission's exercise of implementing powers11. 

5.2. 

Simplification 

5.2.1.  How did the proposal contribute to simplification? 

(a)  Coherence with the financial regulation 

The  programme  proposal  is  fully  coherent  with  the  financial  regulation  and  its 
implementing provisions. Grants and procurement are the main financial instruments 
used  to  implement  the  programme.  The  programme  incorporates  the  simplification 
measures  proposed  in  the  Commission  proposal  for  the  revision  of  the  financial 
regulation, notably the recourse to lump sums, flat rates and unit costs. In view of the 
importance  of  the  processing  of  subsistence  and  travel  costs  paid  under  the 
programme,  the  programme  will  introduce  simplification  measures  offered  by  the 
new Financial Regulation in this area. 

11 

OJ L 55, 28.2.2011, p 13. 

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(b)  Coherence between the Customs and Fiscalis 2013 programmes  

The  management  of  the  previous  Customs and  Fiscalis  programmes  had  been  fully 
aligned  based  upon  identical  procurement  rules  and  grant  models,  common 
management  guides  and  IT  based  systems.  The  management  model  includes  clear 
and  simple  procedures  for  organising  programme  activities.  The  programme 
management team of the Commission is assisted by programme management teams 
in the different customs and tax administrations acting as facilitator and first point of 
contact  for  customs,  respectively  taxation  officials  in  Member  States.  The 
management model allows the deployment of activities in a short time span, reacting 
quickly  to  newly  emerging  needs,  while  at  the  same  time  guarding  coherence 
between the different activities. The Member States have expressed their satisfaction 
with the management model of the programme in the midterm evaluation.  

to 

this  close  alignment  of  both  programmes  and  further 

Considering 
the 
simplification  objective  of  the  proposal  for  the  2014  –  2020  multiannual  financial 
framework12,  the  Commission  initially  proposed  a  single  FISCUS  programme  as 
successor for the Customs and Fiscalis 2013 programmes13. In view of the unanimity 
of  Member  States  being  in  favour  of  splitting  the  proposed  single  programme,  the 
Commission, while maintaining its position against this split, proposed an amended 
proposal  with  two  legislative  texts  for  respectively  the  Customs  and  Fiscalis  2020 
programmes.  Notwithstanding  the  introduction  of  these  separate  legislative  texts, 
maintaining  the  alignment  between  both  programmes  will  be  a  priority  for  the 
Commission  and  where  appropriate,  it  will  be  further  pursued  when  implementing 
the Customs and Fiscalis 2020 programmes. 

(c)  Did the programme consider externalisation? 

The possibility to implement the future programme through an executive agency was 
considered. An agency could be empowered to execute tasks such as the selection of 
the activities under the programme, the administrative preparation and follow-up of 
the  activities,  monitoring  of  the  activities,  grants  and  procurement  of  IT  systems. 
However, such an executive agency would add an additional layer to the governance 
structure,  increasing  the  cost  of  coordination  and  checks,  complicating  and 
lengthening  decision  making  by  adding  new  administrative  procedures.  Also,  it 
would have a negative impact on the level of know-how within the Commission and 
increase  the  risk  of  a  fragmentation  of  content  versus  administrative  aspects.  This 
option  would  not  bring  the  expected  business  benefits  and  has  therefore  been 
discarded.  

In  an  alternative  scenario,  it  was  also  considered  to  transfer  all  relevant  IT 
activities to national administrations with the exception of the CCN/CSI network 
and its related services. In this scenario the risk is very high that gradually it would 
be  necessary  to  set-up  more  central  governance  structures.  The  resulting  impact 
would  be  similar  to  the  effects  of  the  discontinuation  of  the  programmes  which 
would  put  at  risk  the  efficiency  and  effectiveness  of  customs  administrations, 
challenge  the  uniformity  of  the  customs  union  and  thus  the  equal  treatment  of 
traders.  Considering  the  negative  impacts  on  results  and  performance,  this  scenario 
was also discarded.  

12 
13 

COM(2011), 398 Final of 29 June 2011. 
COM(2011), 706 Final of 9 November 2011. 

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(d)  Does the programme use common IT tools to reduce the administrative burden 

on beneficiaries and contractors? 

The Customs 2013 and Fiscalis 2013 programmes already deploy tools to facilitate 
the  management  of  the  programme  activities  and  related  expenditure  through  a 
common Activity Reporting Tool (ART). This will be continued. 

5.2.2.  Performance measurement of the proposal 

The  performance  of  the  programme  will  be  measured  using  a  coherent  set  of 
performance,  impact, result  and output indicators linked to the general  and specific 
objectives  and  priorities  of  the  programme  and  building  the  link  with  the 
Commission  Management  Plan.  The  detailed  list  of  impact,  result  and  output 
indicators  is  available  in  the  Impact  Assessment.  The  Commission  has  identified 
targets for some outputs of the programme, others will be completed through actions 
within  the  Customs  2013  programme.  The  targets  of  all  outputs  will  be  identified 
before the start of the Customs 2020 programme by the Commission and presented to 
the programme Committee. 

5.2.3. 

Is the programme proposal coherent with overall Commission policy  

The programme will contribute towards the objectives of the Europe 2020 Strategy 
by strengthening the Single Market, enhancing the productivity of the public sector 
and sustain technical progress and innovation in  administrations,  and by promoting 
employment.  It  will  support  flagships  on  the  digital  agenda  for  Europe14and  the 
flagship on the Agenda for New Skills and Jobs15. The programme will also support 
the Single Market Act16 and promote growth and innovation by enforcing intellectual 
property  rights  (IPR)  at  the  border  in  line  with  the  recent  comprehensive  IPR 
strategy.17  As  concerns  the  protection  of  the  financial  interests  of  the  Union  and 
Member States, the programme will support the collection of duties and various fees 
on  trade,  and  collaborative  efforts  to  fight  fraud18.  The  customs  union  is  the 
operational  arm  of  EU  trade  policy,  and  the  programme  will  therefore  help 
implementing  bilateral  and  multilateral  trade  agreements,  collecting  duties,  and 
applying trade measures (such as rules of origin), embargoes and other restrictions in 
line with the EU trade strategy19. More recently, customs have been entrusted a role 
in  protecting  the  environment  (related  inter  alia  to  illegal  waste  export,  chemicals, 
ozone  depleting  substances,  illegal  logging  and  the  CITES  convention).  Finally, 
customs  action  and  cooperation  between  customs,  police  and  other  enforcement 
authorities  increasingly  contribute  to  internal  security  of  the  EU  as  reflected  in  the 

14 
15 
16 
17 

18 

19 

COM(2010) 245 Final/2, A Digital Agenda for Europe. 
COM(2010) 682 of 23 November 2010, An Agenda for new skills and jobs. 
COM(2011) 0206 final. 
COM (2011) 287, A Single Market for Intellectual Property Rights – Boosting creativity and innovation 
to provide economic growth, high quality jobs and first class products and services in Europe 
This  programme  will  be  complementary 
(2014-2020) 
to 
Commission(2011)914 final, a programme specifically dedicated to fighting fraud, corruption and other 
illegal activities affecting the financial interests of the Union. 
COM (2010)612. Trade, Growth and World Affairs: Trade policy as a core component of the EU's 2020 
Strategy 

III  programme 

the  Hercule 

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action  plan  for  the  Internal  Security  Strategy20  and  in  the  Stockholm  Programme 
Action Plan.21. 

20 

21 

COM(2010) 673  final,  Brussels,  22.11.2010,  Communication  from  the  Commission  to  the  European 
Parliament and the Council — the EU Internal Security Strategy in Action: Five steps towards a more 
secure Europe. 
COM(2010) 171  final,  Brussels,  20.4.2010,  Communication  From  the  Commission  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the 
Regions:  Delivering  an  area  of  freedom,  security  and  justice  for  Europe's  citizens  —  Action  Plan 
Implementing the Stockholm Programme. 

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10 

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2011/0341/a (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing an action programme for customs in the European Union for the period 
2014-2020 (Customs 2020) and repealing Decision N°624/2007/EC 

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 thereof, 

Having regard to the proposal from the European Commission, 

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  multi-annual  action  programme  for  customs  which  applied  before  2014  has 
significantly  contributed  to  facilitating  and  enhancing  cooperation  between  customs 
authorities within the Union. Many of the activities in the customs area are of a cross-
border  nature,  involving  and  affecting  all  27  Member  States,  and  therefore  they 
cannot  be  effectively  and  efficiently  delivered  by  individual  Member  States.  The 
Customs 2020 programme, implemented by the Commission, offers Member States a 
Union framework to develop these cooperation activities, which is more cost efficient 
than  if  each  Member  State  would  set  up  its  individual  cooperation  framework  on  a 
bilateral or multilateral basis. It is therefore appropriate to ensure the continuation of 
this programme by establishing a new programme in the same area.  

The programme activities, i.e. the European Information Systems, the joint actions for 
customs officials and the common training initiatives, are expected to contribute to the 
realisation of the Europe 2020 Strategy for smart, sustainable and inclusive growth22. 
In  providing  a  framework  for  activities  which  strive  for  more  efficient  customs 
authorities,  strengthen  the  competitiveness  of  businesses,  promote  employment  and 
contribute  to  the  protection  of  the  Union's  financial  and  economic  interests,  the 
programme will actively strengthen the functioning of the customs union. 

To support the process of accession and association by third countries, the programme 
should  be  open  for  the  participation  of  acceding  and  candidate  countries  as  well  as 
potential candidates and partner countries of the European Neighbourhood Policy23 if 
certain  conditions  are  fulfilled.  Considering  the  increasing  interconnectivity  of  the 
world  economy,  the  programme  continues  to  provide  the  possibility  to  involve 
external  experts,  such  as  officials  of  third  countries,  representatives  of  international 
organisations  or  economic  operators  in  certain  activities.  The  setting  up  of  EEAS 
under the authority of the High Representative Vice-President (HRVP) may facilitate 

22 
23 

COM(2010) 2020. 
COM(2004)373 

EN 

11 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

policy  coordination  and  coherence  in  an  area  which  is  a  relevant  component  of  EU 
external strategies and actions, both on bilateral and multilateral basis. 

The  programme  objectives  take  into  account  the  problems  and  challenges  identified 
for customs in the next decade. The programme should continue to play a role in vital 
areas like the coherent implementation of Union customs and related law. Moreover, 
the focus of the programme will be on protecting the financial and economic interests 
of the Union, safeguarding safety and security, trade facilitation, among others through 
collaborative  efforts  to  fight  fraud  and  increasing  the  administrative  capacity  of 
customs authorities. 

The programme tools which applied before 2014 have proven to be adequate and have 
therefore  been  retained.  In  view  of  the  need  for  more  structured  operational 
cooperation, additional tools have been added, namely expert teams composed of the 
Union  and  national  experts  to  perform  jointly  tasks  in  specific  domains  and  public 
administration  capacity  building  actions  which  should  provide  specialised  assistance 
to those participating countries needing administrative capacity building. 

The European information systems play a vital role in reinforcing the customs systems 
within the Union and should therefore continue to be financed under the programme. 
In  addition,  it  should  be  made  possible  to  include  in  the  programme  new  customs 
legislation.  European 
related 
Information  Systems  should,  where  appropriate,  be  based  upon  shared  development 
models and IT architecture. 

information  systems  established  under  Union 

Human competency building in the form of common training should also be realised 
through  the  programme.  Customs  officials  need  to  build  up  and  update  their 
knowledge and skills required to serve the needs of the Union. The programme should 
be essential to strengthen the human capacities through enhanced training support that 
targets  customs  officials  as  well  as  economic  operators.  To  this  end,  the  current 
common training approach of the Union which was mainly based on central eLearning 
development should develop into a multi-facetted training support programme for the 
Union. 

The programme should cover a period of seven years to align its duration with that of 
the multiannual financial framework laid down in Council Regulation (EU) N° xxx of 
xxx laying down the multiannual financial framework for the year 2014-202024. 

For  the  entire  duration  of  the  programme,  a  financial  envelope  should  be  laid  down 
constituting  the  prime  reference,  within  the  meaning  of  point  [17]  of  the 
Interinstitutional  Agreement  of  XX/YY/201Z  between  the  European  Parliament,  the 
Council  and  the  Commission  on  cooperation  in  budgetary  matters  and  on  sound 
financial  management,  for  the  budgetary  authority  during  the  annual  budgetary 
procedure. 

(10) 

In  line  with  the  Commission's  commitment  set  out  in  its  Communication  on  the 
Budget  Review  of  201025  to  coherence  and  simplification  of  funding  programmes, 
resources  should  be  shared  with  other  Union  funding  instruments  if  the  envisaged 
programme  activities  pursue  objectives  which  are  common  to  various  funding 
instruments  excluding  however  double  financing.  Actions  within  this  programme 

24 
25 

To be completed 
COM(2010)700 

EN 

12 

   EN 

 
                                                 
should ensure coherence in the use of the Union's resources supporting the functioning 
of the customs union. 

(11)  The  measures  necessary  for  the  financial  implementation  of  this  Regulation  shall  be 
adopted in accordance with Council Regulation (EC, Euratom) No xxx/20xx of xxx on 
the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities,  and  with  Commission  Regulation  (EC,  Euratom)  No  xxx/20xx  of  xxx 
laying  down  detailed  rules  for  the  implementation  of  Council  Regulation  (EC, 
Euratom)  No  xxx/20xx  of  xxx  (references  of  new  financial  regulation  and 
implementing act to be added). 

(12)  The financial interests of the Union should be protected through appropriate measures 
throughout the expenditure cycle, including the prevention, detection and investigation 
of  irregularities,  the  recovery  of  funds  lost,  wrongly  paid  or  incorrectly  used  and, 
where appropriate, penalties. 

(13) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing  powers  should  be  conferred  on  the  Commission  in  respect  of  the 
establishment of  the  annual  work programmes. Those  powers  should be  exercised in 
accordance with 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  the  Member  States  of  the  Commission's  exercise  of 
implementing powers26. 

(14)  Since  the  objectives  of  the  action  to  be  taken,  namely  establishing  a  multi-annual 
programme  to  improve  the  functioning  of  the  customs  union,  cannot  be  sufficiently 
achieved by the Member States which cannot efficiently perform the cooperation and 
coordination necessary to carry out the programme, the Union may adopt measures in 
accordance with the principle of subsidiarity as set out in Article 5 TEU. 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 those objectives. 

(15)  The  Commission  should  be  assisted  by  the  Customs  2020  Committee  for  the 

implementation of the programme.  

(16)  Directive 95/46 of the European Parliament and of the Council of 24 October 1995 on 
the protection of individuals with regard to the processing of personal data and on the 
free movement of such data governs the processing of personal data carried out in the 
Member  States  in  the  context  of  this  Regulation  and  under  the  supervision  of  the 
Member States competent authorities, in particular the public independent authorities 
designated  by  the  Member  States.  Regulation  (EU)  No  45/2001  of  the  European 
Parliament and of the Council of 18 December 2000 on the protection of individuals 
with regard to the processing of personal data by the EU institutions and bodies and on 
the free movement of such data, governs the processing of personal data carried out by 
Commission within the framework of this Regulation and under the supervision of the 
European  Data  Protection  Supervisor.  Any  exchange  or  transmission  of  information 
by  competent  authorities  should  be  in  accordance  with  the  rules  on  the  transfer  of 
personal data as laid down in Directive 95/46/EC and any exchange or transmission of 
information by the Commission should be in accordance with the rules on the transfer 
of personal data as laid down in Regulation (EC) No 45/2001. 

26 

OJ 28.2.2011 L 55-13 

EN 

13 

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(17)  This Regulation should replace Decision N°624/2007/EC of the European Parliament 
and the Council of 23 May 2007 establishing an action programme for customs in the 
Community (Customs 2013)27. That Decision should therefore be repealed, 

HAVE ADOPTED THIS REGULATION: 

Chapter I 
General provisions 

Article 1 
Subject matter 

1. 

2. 

A  multi-annual  action  programme  "Customs  2020"  ("the  programme")  is  hereby 
established to support the functioning of the customs union.  

The programme shall cover the period 1 January 2014 to 31 December 2020. 

Article 2 
Definitions 

For the purpose of this Regulation the following definitions shall apply: 

(1) 

"customs  authorities"  means  the  authorities  responsible  for  applying  rules  on 
customs; 

(2) 

"External experts" means: 

(a) 

(b) 

(c) 

representatives of governmental authorities including from countries not 
participating in the programme according to article 3(2)1 and 3(2)2;  

economic operators and their organisations; 

representatives of international and other relevant organisations. 

Article 3 
Participation in the programme 

1. 

2. 

Participating  countries  shall  be  the  Member  States  and  the  countries  referred  to  in 
paragraph 2 provided the conditions set out in that paragraph are met. 

The programme shall be open to the participation of any of the following countries: 

(1) 

acceding  countries,  candidate  countries  and  potential  candidates  benefiting 
from  a  pre-accession  strategy,  in  accordance  with  the  general  principles  and 
general terms and conditions for the participation of those countries in Union 
programmes established in the respective Framework Agreements, Association 
Council Decisions or similar Agreements; 

(2)  partner  countries  of  the  European  Neighbourhood  Policy  provided  that  those 
countries  have  reached  a  sufficient  level  of  approximation  of  the  relevant 
legislation  and  administrative  methods  to  those  of  the  Union.  The  partner 
countries  concerned  shall  participate  to  the  programme  in  accordance  with 
provisions to be determined with those countries following the establishment of 
Framework Agreements concerning their participation in Union programmes. 

27 

OJ L 154, 14.6.2007, p. 25 

EN 

14 

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Article 4 
Participation in the programme activities 

External experts may be invited to take part in selected activities organised under the 
programme wherever this is useful for the achievement of the objectives referred to 
in Articles 5. These experts shall be selected by the Commission on the basis of their 
skills, experience and knowledge relevant to the specific activities.  

Article 5 
General objective and specific objective 

1. 

2. 

3. 

The  general  objective  of  the  programme  shall  be  to  strengthen  the  internal  market 
through an efficient and effective customs union. 

The  specific  objective  of  the  programme  shall  be  to  support  the  functioning  of  the 
customs  union,  in  particular  through  cooperation  between  participating  countries, 
their  customs  authorities,  other  competent  authorities,  their  officials  and  external 
experts.  

The  achievement  of  this  objective  shall  be  measured  on  the  basis  of  the  following 
indicators: 

(1) 

(2) 

the  availability  of  the  Common  Communication  Network  for  the  European 
Information Systems; 

the  feedback  from  participants  in  programme  actions  and  users  of  the 
programme. 

The priorities of the programme shall be the following: 

Article 6 
Priorities  

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

to  support  the  preparation,  coherent  application  and  effective  implementation 
of  Union  law,  with  a  view  of  strengthening  the  customs  union  in  terms  of 
efficiency, effectiveness and uniformity. 

to  strengthen  the  competitiveness  of  European  businesses  through  the 
facilitation  of  legitimate  trade,  the  reduction  of  compliance  costs  and 
administrative burden, and the protection against unfair competition,  

to  support  customs  in  protecting  citizens,  safety  and  security  and  the 
environment. 

to ensure the protection of the financial and economic interests of the European 
Union and the Member States; 

to  contribute  to  the  efficient  functioning  of  customs  authorities  by  improving 
their administrative capacity, 

to fight fraud and to enhance competitiveness, safety and security by enhancing 
countries,  other 
cooperation  with 
governmental authorities, economic operators and their organisations. 

international  organisations, 

third 

EN 

15 

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Chapter II 
Eligible actions 

Article 7 
Eligible actions 

The  programme  shall  provide,  under  the  conditions  set  out  in  the  annual  work  programme 
referred to in Article 14, financial support for the following types of action: 

(1) 

Joint actions: 

(a) 

seminars and workshops; 

(b)  project  groups,  generally  composed  of  a  limited  number  of  countries, 
operational  during  a  limited  period  of  time  to  pursue  a  predefined 
objective with a precisely described outcome; 

(c)  working visits organised by the participating countries or a third country 
to enable officials to acquire or increase their expertise or knowledge in 
customs matters; for working visits organised within third countries only 
travel  and  subsistence  (accommodation  and  daily  allowance)  costs  are 
eligible under the programme; 

(d)  monitoring activities carried out by joint teams made up of Commission 
officials  and  officials  of  the  Participating  Countries  to  analyse  customs 
practices,  identify  any  difficulties  in  implementing  rules  and,  where 
appropriate,  make  suggestions  for  the  adaptation  of  union  rules  and 
working methods; 

(e) 

(f) 

(g) 

(h) 

(i) 

expert  teams,  which  are  structured  forms  of  cooperation,  with  a  non-
permanent or permanent character, pooling expertise to perform tasks in 
specific domains or carry out operational activities, possibly with support 
of  online  collaboration 
services,  administrative  assistance  and 
infrastructure and equipment facilities; 

public administration capacity building and supporting actions; 

studies; 

communication projects; 

any  other  activity  in  support  of  the  specific  objective  and  priorities  set 
out in Articles 5 and 6 

(2) 

IT capacity building: development, maintenance, operation and quality control 
of  Union  components  of  European  Information  Systems  set  out  in  point  1  of 
the  Annex  and  new  European  Information  Systems  established  under  Union 
legislation 

(3)  Human  competency  building:  common  training  actions  to  support  the 

necessary professional skills and knowledge relating to customs. 

Article 8 
Specific implementation provisions for joint actions 

1. 

Participating  countries  shall  ensure  that  officials  with  the  adequate  profile  and 
qualifications are nominated to participate in the joint actions. 

EN 

16 

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2. 

1. 

2. 

1. 

2. 

3. 

1. 

2. 

Participating  countries  shall  take  the  necessary  measures  for  the  implementation  of 
the joint actions, in particular by raising awareness on those actions and by ensuring 
an optimal use is made of the outputs generated. 

Article 9 
Specific implementation provisions  
for the European Information Systems 

The  Commission  and  the  participating  countries  shall  ensure  that  the  European 
Information Systems referred to in point 1 of the Annex are developed, operated and 
appropriately maintained. 

The  Commission  shall  coordinate,  in  cooperation  with  the  participating  countries, 
those  aspects  of  the  establishment  and  functioning  of  the  Union  and  non-Union 
components  of  the  systems  and  infrastructure  referred  to  in  points  1  and  2  of  the 
Annex  which  are  necessary  to  ensure  their  operability,  interconnectivity  and 
continuous improvement. 

Article 10  
Specific implementation provisions for common training 

Participating countries shall, where appropriate, integrate jointly developed training 
content,  including  e-learning  modules,  training  programmes  and  commonly  agreed 
training standards in their national training programmes. 

Participating  countries  shall  ensure  that  their  officials  receive  the  initial  and 
continuing training necessary to acquire common professional skills and knowledge 
in accordance with the training programmes. 

Participating countries shall provide the linguistic training necessary for officials to 
ascertain  a  sufficient  level  of  linguistic  competence  for  participation  in  the 
programme. 

Chapter III 
Financial Framework 

Article 11 
Financial framework 

The  financial  envelope  for  the  implementation  of  the  programme  shall  be  EUR 
548.080.000 (in current prices). 

The  financial  allocation  for  the  programme  may  also  cover  expenses  pertaining  to 
preparatory,  monitoring,  control,  audit  and  evaluation  activities  which  are  required 
for  the  management  of  the  programme  and  the  achievement  of  its  objectives;  in 
particular,  studies,  meetings  of  experts,  information  and  communication  actions, 
including corporate communication of the political priorities of the European Union 
as far as they are related to the objectives of this Regulation, expenses linked to IT 
networks  focusing  on  information  processing  and  exchange,  together  with  all  other 
technical and administrative assistance expenses incurred by the Commission for the 
management of the programme. 

EN 

17 

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1. 

2. 

3. 

1. 

2. 

3. 

Article 12 
Types of intervention 

The  Commission  shall  implement  the  programme  in  accordance  with  the  Financial 
Regulation. 

Union financial support for activities provided for in Article 7 shall take the form of:  

(1)  grants; 

(2)  public procurement contracts; 

(3) 

reimbursement of costs incurred by external experts referred to in Article 4 

The co-financing rate for grants shall be up to 100 % of the eligible costs where the 
latter are travel and accommodation costs, costs linked to organisation of events and 
daily  allowances.  That  rate  shall  apply  to  all  eligible  actions  with  the  exception  of 
expert teams. For this category of eligible actions, the annual work programmes will 
specify the applicable co-financing rate when these actions require the awarding of 
grants.  

Article 13 
Protection of the financial interests of the Union  

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Regulation are implemented, the financial interests of the Union 
are protected by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the  recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and dissuasive administrative and financial penalties.  

The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  documents  and  on  the  spot,  over  all  grant 
beneficiaries,  contractors  and  subcontractors  who  have  received  Union  funds  under 
this programme. 

The European Anti-fraud Office (OLAF) may carry out investigations, including on-
the-spot  checks  and  inspections,  in  accordance  with  the  provisions  and  procedures 
laid down in Regulation (EC) No 1073/1999 of the European Parliament and of the 
Council of 25 May 1999 and Council Regulation (Euraton, EC) No 2185/1996 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 irregularities28 with a view to establishing whether there has 
been fraud, corruption or any other illegal activity affecting the financial interests of 
the  European  Union  in  connection  with  a  grant  agreement  or  grant  decision  or  a 
contract concerning Union funding.  

28 

OJ L 292, 15.11.1996, p. 2. 

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18 

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Chapter IV 
Implementing powers  

Article 14 
Work programme 

1. 

2. 

1. 

2. 

In  order  to  implement  the  programme  the  Commission  shall  adopt  annual  work 
programmes  which  shall  set  out  the  objectives  pursued,  the  expected  results,  the 
method  of  implementation  and  their  total  amount.  They  shall  also  contain  a 
description  of  the  actions  to  be  financed,  an  indication  of  the  amount  allocated  to 
each action type and an indicative implementation timetable. The work programmes 
shall  include  for  grants  the  priorities,  the  essential  evaluation  criteria  and  the 
maximum rate of co-financing. This implementing act shall be adopted in accordance 
with the examination procedure referred to in Article 14(2).  

In preparing the annual work programme, the Commission shall take into account the 
common  approach  regarding  the  customs  policy.  That  approach  shall  regulary  be 
reviewed and established in a partnership between the Commission and the Member 
States  in  the  Customs  Policy  Group,  composed  of  the  heads  of  customs 
administrations from the Member States or their representatives and the Commission.  

The  Commission  shall  keep  the  Customs  Policy  Group  regularly  informed  of 
measures relating to the implementation of the programme. 

Article 15 
Committee procedure 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU) 
No 182/2011 shall apply. 

Chapter V 
Monitoring and Evaluation 

Article 16 
Monitoring of programme actions 

The Commission shall, in cooperation with the participating countries, monitor the 
programme and its actions in order to follow the implementation of actions carried out.  

Article 17 
Evaluation 

1. 

2. 

The  Commission  shall  ensure  a  midterm  and  final  evaluation  of  the  programme, 
regarding the aspects referred to in paragraph 2 and 3. The results shall be integrated 
into  decisions  on  possible  renewal,  modification  or  suspension  of  subsequent 
programmes. An independent external evaluator shall carry out these evaluations. 

The Commission shall establish a mid-term evaluation report on the achievement of 
the  objectives of  the  programme  actions, the efficiency of the  use of resources and 
the European added value of the programme no later than mid 2018. This report shall 

EN 

19 

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additionally address the simplification, the continued relevance of the objectives, as 
well  as  the  contribution  of  the  programme  to  the  Union  priorities  of  smart, 
sustainable and inclusive growth. 

The Commission shall establish a final evaluation report on the aspects referred to in 
paragraph 2 as well as on the long term impact and the sustainability of effects of the 
programme no later than end 2021. 

The participating countries shall provide, on request of the Commission, all data and 
information  relevant  for  the  purpose  of  contributing  to  the  mid  term  and  final 
evaluation reports of the Commission. 

3. 

4. 

Chapter VI  
Final Provisions 

Article 18 
Repeal  

Decision No 624/2007/EC is repealed with effect from 1 January 2014. 

However, financial obligations related to actions pursued under this Decision shall continue to 
be governed by this Decision until their completion. 

Article 19 
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. 

It shall apply from 1 January 2014. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

20 

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European Information Systems and their Union components 

1. 

The European Information Systems are the following: 

ANNEX  

(1) 

(2) 

the common communications network/common systems interface (CCN/CSI – 
CCN2),  CCN  mail3,  the  CSI  bridge,  the http bridge, CCN LDAP  and  related 
tools, CCN web portal, CCN monitoring; 

supporting  systems,  in  particular  the  application  configuration  tool  for  CCN,, 
the  activity  reporting  tool  (ART2),  Taxud  electronic  management  of  project 
online  (TEMPO),  service  management  tool  (SMT),  the  user  management 
system  (UM),  the  BPM  system,  the  availability  dashboard  and  AvDB,  IT 
service management portal, directory and user access management;  

(3)  Programme' information and communication space (PICS); 

(4) 

(5) 

(6) 

(7) 

the customs movement systems, in particular the (New) Computerised Transit 
System  ((N)CTS),  NCTS  TIR  for  Russia,  the  Export  Control  System  (ECS) 
and  the  Import  Control  system  (ICS).  The  following  applications/components 
are supporting these systems: the system to exchange data with third countries 
(SPEED  bridge),  the  SPEED  Edifact  Converter  Node  (SPEED-ECN),  the 
Standard  SPEED  Test  Application  (SSTA),  the  Standard  Transit  Test 
Application  (STTA),  the  Transit  Test  Application  (TTA),  the  Central 
Services/Reference  Data 
the  Central  Services/Management 
Information System (CS/MIS); 

(CSRD2), 

the  Community  Risk  Management  System  (CRMS)  covering  the  Risk 
Information Forms (RIF) and the Common Profiles CPCA functional domains; 

the  Economic  Operators  System  (EOS)  covering  the  Economic  Operator 
Registration  and  Identification  (EORI),  the  Authorised  Economic  Operators 
(AEO), the Regular Shipping Services (RSS) and the mutual recognition with 
partner  countries  functional  domains.  The  Generic  Web  Service  is  a  support 
component for this system; 

the  quota  management  system  (QUOTA2), 

the  tariff  system  (TARIC3)  which  is  a  reference  data  system  for  other 
applications  such  as 
the 
surveillance  management  and  monitoring  system  (SURV2),  the  European 
Binding  Tariff  Information  system  (EBTI3)  the  European  Customs  Inventory 
of Chemical Substances (ECICS2). The Combined Nomenclature (CN) and the 
suspensions (Suspensions) applications are managing legal information with a 
direct link to the tariff system; 

(8) 

the applications for control purposes, in particular the Specimen Management 
System (SMS) and the Information System for Processing Procedures (ISPP); 

(9) 

the anti-COunterfeit and anti-PIracy System (COPIS); 

(10)  the  Data  Dissemination  System  (DDS2)  managing  all  information  which  is 

accessible to the public via Internet; 

(11)  the Anti-Fraud Information System (AFIS);  

2. 

The Union components of the European Information Systems are: 

(1) 

IT assets such as the hardware, the software and the network connections of the 
systems including the associated data infrastructure; 

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21 

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(2) 

(3) 

IT  services  necessary  to  support  the  development,  the  maintenance,  the 
improvement and the operation of the systems; 

and  any  other  elements  which,  for  reasons  of  efficiency,  security  and 
rationalisation,  are  identified  by  the  Commission  as  common  to  participating 
countries.  

EN 

22 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal for a Regulation  of the European Parliament and of the Council establishing an 
action programme for customs in the European Union for the period 2014-2020 (Customs 
2020) and repealing Decision N°624/2007/EC. 
Policy area(s) concerned in the ABM/ABB structure29  

1.2. 

1404 Customs Policy 

1.3. 

Nature of the proposal/initiative  

(cid:133) The proposal/initiative relates to a new action  
(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action30  

X The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

The  proposed  programme  will  contribute  to  the  Europe  2020  Strategy  for  smart, 
sustainable  and  inclusive  growth31  by  (1)  strengthening  the  functioning  of  the  Single 
Market,  (2)  providing  a  framework  to  support  activities  enhancing  productivity  of  the 
public sector and (3) pushing technical progress and innovation in national and European 
customs administrations.  

The customs union is fundamental to the internal market. The borderless internal market 
for  goods  requires  goods  originating  from  third  countries  to  comply  with  formalities  and 
other requirements upon entry or when released into circulation; after this, they can move 
around freely within the external borders of the EU. Customs supports the development of 
fair,  competitive  internal  market  conditions by uniform application of common rules and 
regulations.  It  supports  growth  and  innovation  within  the  internal  market  for  instance  by 
enforcing  intellectual  property  rights  (IPR)  at  the  border  (see  also  the  European  anti-
counterfeiting  and  anti-piracy  plan32  and  the  new  strategy  for  IPR  in  the  Single 
Market  as  recently  adopted  by  the  Commission).  Responses  to  a  recent  public 
consultation33  on  the  future  of  the  internal  market  suggest  high  expectations  among 
industry  federations  regarding  further  EU  action  against  counterfeiting  and  piracy. 
Customs has a fundamental role in effective enforcement of IPR, as confirmed by statistics 
on  IPR  customs  activities.34In  addition  the  programme  will  support  a  large  variety  of 
policy measures in the framework of the customs union. For instance, the protection of the 
financial  interests  of  the  EU  and  Member  States  through  the  collection  of  duties  and 
various  fees  and  taxes  on  trade,  and  collaborative  efforts  to  fight  fraud.  In  2010, 

29 
30 
31 
32 
33 

34 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 
COM(2010) 2020 final of 3 March 2010: A strategy for smart, sustainable and inclusive growth. 
Adopted by Council in 2008 (2008/C 253/01). 
SEC(2011)  467  final,  13.4.2011.  Overview  of  responses  to  the  public  consultation  on  the  Communication 
"Towards a Single Market Act". 
http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/counterfeit_piracy/ 
statistics/statistics_2010.pdf. 

EN 

24 

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approximately 12.3 % (15.7 billion euro) of the EU budget corresponded to traditional own 
resources.35 The customs union is the operational arm of EU Trade Policy, implementing 
bilateral and multilateral trade agreements, collecting duties, and applying trade measures 
(such  as  rules  of  origin),  embargoes  and  other  restrictions.  The  discussion  paper  Trade, 
Growth  and  World  Affairs:  Trade  policy  as  a  core  component  of  the  EU's  2020 
Strategy36  published  in  November  2010,  highlights  the  agenda  for  international  customs 
cooperation  in  the  framework  of  bilateral  agreements  and  in  the  World  Customs 
Organization. It emphasises that efficient customs procedures reduce compliance costs for 
traders, facilitate legitimate trade, and help to address rising security, safety and IPR risks. 

The role of the customs union in contributing to internal security of the EU has become 
increasingly  prominent,  and  will  continue  to  grow,  as  reflected  in  the  action  plan  for  the 
Internal  Security  Strategy37  and  in  the  Stockholm  Programme  Action  Plan.38 
Furthermore,  customs  action  and  cooperation  between  customs,  police  and  other 
enforcement  authorities  contribute  to  global  security  objectives  such  as  the  fight  against 
money laundering, organised cross-border crime, and terrorism. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objectives and ABM/ABB activity(ies) concerned 

The  ABB  activity  concerned  is  Customs  Policy  (1404).The  specific  objective  of  the 
programme will be the following: 

to support the functioning of the customs union, in particular through cooperation between 
participating countries, their customs authorities, other competent authorities, their officials 
and external experts. 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

From customs point of view, Member States, by transferring their powers to the EU – the 
customs union being an exclusive competence of the EU – ipso facto agreed that actions in 
the customs area will be better applied at EU level. However, the EU legal framework in 
itself does not ensure proper functioning of the customs union. Flanking support measures 
as provided by the Customs programme are required to ensure that EU customs legislation 
is  applied  in  a  convergent  and  harmonised  way,  so  that  treatment  of  traders,  fraud 
prevention, and legal obligations do not vary. 

Moreover, many of the activities in the customs area are of a cross-border nature, involving 
and  affecting  all  27  Member  States  and  therefore  they  cannot  be  effectively  and 
efficiently  delivered  by  individual  Member  States.  EU  action  is  needed  to  underpin  the 
European dimension of customs work, to avoid internal market distortions and to support 
the effective protection of the EU borders. 

35 

36 
37 

38 

Directorate  General  for  Budget,  Thematic  Report  on  the  customs  control  strategy  in  the  Member  States  — 
Control of traditional own resources, p3. 
COM (2010)612, Trade, Growth and World Affairs, page 12. 
COM(2010) 673  final,  Brussels,  22.11.2010,  Communication  from  the  Commission  to  the  European 
Parliament and the Council — the EU Internal Security Strategy in Action: Five steps towards a more secure 
Europe. 
COM(2010) 171  final,  Brussels,  20.4.2010,  Communication  From  the  Commission  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions: 
Delivering  an  area  of  freedom,  security  and  justice  for  Europe's  citizens  —  Action  Plan  Implementing  the 
Stockholm Programme. 

EN 

25 

   EN 

 
                                                 
Solidarity and responsibility sharing are the principles underlying funding for the customs 
union.  Situations  where  the  need  for  effective  measures  exceeds  the  ability  of  particular 
Member States to supply them are detrimental to the union as a whole. EU intervention is 
required to preserve the EU public good where EU demand (e.g. for security) cannot be 
adequately serviced  by the supply  of particular Member States. In such cases, EU action 
translates into jointly funding technical capacity building to meet the demand for effective 
control despite the limited supply capability of specific Member States. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

Monitoring  of  the  programme's  activities  will  be  carried  out  in  order  to  ensure  that  the 
rules and procedures for the implementation of the programme have been applied properly 
and  to  verify  if  the  programme  is  successful  in  achieving  its  objectives.  A  monitoring 
framework  will  be  put  in  place,  including:  an  intervention  logic,  a  comprehensive  set  of 
indicators,  measurement  methods,  a  data  collection  plan,  a  clear  and  structured  reporting 
and monitoring process and midterm and final evaluations. 

The performance of the programme will be measured using a coherent set of performance, 
impact,  result  and  output  indicators  linked  to  the  general  and  specific  objectives  and 
prioritiesof the programme and building the link with the Commission Management Plan. 
The  detailed  list  of  impact,  result  and  output  indicators  is  available  in  the  Impact 
Assessment.  DG  TAXUD  has  identified  targets  for  some  outputs  of  the  programme.  For 
some others though this is not yet feasible at this point in time. The targets of those outputs 
will  be  identified  before  the  start  of  the  Customs  2020  programme  by  DG  TAXUD  and 
presented to the Programme Committee for endorsement in the framework of the Annual 
Work programme procedure. 

The general andspecific objectives will be measured among others as the availability of 
the  Common  Communication  Network  for  the  European  Information  systems  and  will 
have as target a 97% availability. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term 

The  proposal  contributes  to  the  Europe  2020  strategy  and  the  implementation  of  various 
other Union legislations as elaborated under chapter 1.4.1 

1.5.2.  Added value of EU involvement 

It is more beneficial to initiate actions at the Union level than at the level of 27 Member 
States as described in detail in chapter 3.2 of the explanatory memorandum. 

1.5.3.  Lessons learned from similar experiences in the past 

From an economic point of view, action at EU level is much more efficient. The backbone 
of the customs cooperation is a highly secured dedicated communication network which is 
operational  since  the  first  customs  cooperation  programmes  in  the  early  90's.  It 
interconnects national customs administrations in approximately 5.00039 connection points. 
This common IT network ensures that every national administration only needs to connect 
once to this common infrastructure to be able to exchange any kind of information. If such 
an infrastructure were not available customs administrations in the Member States would 
have to link 26 times to the national systems of each of the other Member States. 

39 

Customs and Taxation connection points taken together. 

EN 

26 

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Other  cornerstones  of  the  programme  are  activities  that  bring  customs  officials  together 
with the purpose of exchanging best practices, to learn from each other, analyse a problem 
or draft a guide, for instance. If Member States would have had to learn from each other by 
developing  their  own  activities  outside  the  programme  umbrella,  they  would  all  have 
developed  their  own  set  of  tools  and  ways  of  work.  Synergies  between  activities  would 
have been lost and common activities would not have been implemented systematically at 
the level of 27 Member States. It is much more efficient to have, with the support of the 
programme, the Commission acting as activity broker between the participating countries. 

Another  important  value  added  is  one  of  an  intangible  nature.  The  programme  has  been 
instrumental  in  creating  a  sense  of  common  interest,  stimulating  mutual  trust  and 
generating  a  cooperation  spirit  between  Member  States  and  Member  States  and  the 
Commission in the area of customs. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  management  of  the  Fiscalis  2020  and  Customs  2020  programmes  will  be  aligned 
whenever  possible.  The  programmes  share  a  common network for the implementation of 
European IT Systems, a common platform for online collaboration (PICS) and a common 
tool  for  the  Activity  Reporting  (ART2).  Methodologies  applied  for  the  Human  Capacity 
Building are also shared between the two programmes.  

One of the policy scenarios worked out for the customs area foresees to financially support 
Member  States'  customs  authorities  for  acquiring  equipment  and  build  up  their  technical 
capacity. Rather than working out a financing scheme for this purpose under the Customs 
2020  programme,  Member  States  may  call  on  other  programmes,  including  Regional 
Structural Funds for supporting this need.  

The Midterm evaluation of the DG HOME programmes on Prevention of and Fight against 
Crime (ISEC)  and Prevention,  Preparedness and  Consequence  Management  of  Terrorism 
&  other  Security  Related  Risks  (CIPS)40  considers  the  Customs  and  Fiscalis  2013 
programme  management  model  "offers  the  most  promising  prospects  for  improving  the 
management  of  ISEC/CIPS  as  it  allows  to  promptly  and  flexibly  respond  to  operational 
needs".  

The backbone for trans-European IT systems is the CCN/CSI network, also being used by 
OLAF  for  the  exchange  (and  storage)  of  information on irregularities and fraud. For this 
purpose both DGs benefit from economies of scale. 

1.6. 

Duration and financial impact  

X Proposal/initiative of limited duration  

–  (cid:133)  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  X  Financial impact 2014 to 2023 (from 2021 to 2023 only for payment appropriations) 

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

40 

COM(2005) 124 of 6 April 2005 has a budget of 745 million euro in the 2007-2013 financial framework. 

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27 

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1.7.  Management mode(s) envisaged41  

X Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

(cid:133) 

(cid:133) 

(cid:133) 

executive agencies 
bodies set up by the Communities42 

national public-sector bodies/bodies with public-service mission 

(cid:133) 
persons  entrusted  with  the  implementation  of  specific  actions  pursuant  to 
Title  V  of  the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act 
within the meaning of Article 49 of the Financial Regulation 

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

/ 

41 

42 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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28 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Monitoring of the programme's activities will be carried out in order to ensure that the 
rules and procedures for the implementation of the programme have been applied properly 
(audit function. The proposals for joint action activities are monitored on a permanent basis 
through an online database, Activity Reporting Tool (ART2), which contains the proposals 
and  their  corresponding  activities.  The  same  tool  allows  the  beneficiaries  of  the  grants 
issued under the programme, namely the Member States customs administrations, to report 
online  the  expenses  financed  from  the  grant  to  participate  in  the  joint  action  activities. 
Annually Member States have to sent a financial report to the Commission which using the 
Activity Reporting Tool. 

For  the  IT  and  Training  Capacity  Building  activities  that  are  financed  through 
procurement, the standard reporting and monitoring rules apply.  

The  programme  will  be  evaluated  twice.  The  results  of  the  midterm  evaluation  will  be 
available by mid-2018 and those of the final evaluation of the programme towards the end 
of 2021. Member States, as main beneficiaries of the programme will do an important part 
of  the  data  collection  either  by  providing  information  at  the  level  of  the  individual  tools 
(mainly through ART2) or on the wider impact of the programme (either by participating 
in perception measuring exercises or through the issuing of reports).  

Up  to  now,  evaluation  exercises  of  the  existing  programmes,  predominantly  addressed 
primary  stakeholders  of  the  programme,  namely  customs  authorities  and  their  experts 
which are the target audience of the programme. Considering the importance of consulting 
also  stakeholders  that  are  external  to  the  programme  (i.e.  economic  operators)  on  the 
impacts  the  programme  has  on  them  and  to  what  extent  they  benefit  for  instance  from 
better  cooperation  between  customs  administrations,  this  dimension  of  indirect  impacts 
will be included in future programme evaluations. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The potential risks for the implementation of the grants are related to: 

– 

Incorrect  implementation  of  the  grant  agreement  signed  with  the  consortium  of  the 
Member  States and  Candidate  Countries. The level of risk is considered low, since 
the beneficiaries are public administrations of the participating countries 

–  Member  States  declare  expenses  for  an  activity  that  is  not  approved  under  the 

programme  

–  Member States declare twice the same expenses 

The  potential  risks  for  the  implementation  of the  procurement  contracts  concluded  under 
the umbrella of the programme are related to : 

– 

– 

Non-respect of procurement rules 

Payment of an invoice for a non-existing deliverable 

2.2.2.  Control method(s) envisaged  

The main elements of the control strategy applied are: 

1. Financial controls common for all expenditure areas: 

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29 

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Ex-ante verification of commitments:  

All  commitments  in  DG  TAXUD  are  verified by  the  head  of  the  HR  and  Finances  Unit. 
Consequently,  100%  of  the  committed  amounts  are  covered  by  the  ex-ante  verification. 
This  procedure  gives  a  high  level  of  assurance  as  to  the  legality  and  regularity  of 
transactions. 

Ex-ante verification of payments:  

All  payments  are  ex-ante  verified  according  to  financial  regulations  and  established 
procedures. This in-depth control is performed by a financial verificator and an authorizing 
officer. 

In addition at least one payment (from all categories of expenditures) per week is randomly 
selected  for  ex-ante  in-depth  verification  performed  by  the  head  of the  HR  and  Finances 
Unit. There is no target concerning the coverage, as  the purpose  of this verification is to 
check payments "randomly" in order to verify that all payments were prepared in line with 
the requirements. The remaining payments are processed according to the rules in force on 
a daily basis. 

Declarations of the AOSD:  

All the Authorising Officers by Sub-Delegations sign declarations supporting the Annual 
Activity Report for the year concerned. These declarations cover the operations under the 
programme. The AOSD declare that the operations connected with the implementation of 
the  budget  have  been  executed  in  accordance  with  the  principles  of  the  sound  financial 
management,  that  the  management  and  control  systems  in  place  provided  satisfactory 
assurance  concerning  the  legality  and  regularity  of  the  transactions  and  that  the  risks 
associated  to  these  operations  have  been  properly  identified,  reported  and  that  mitigating 
actions have been implemented. 

2. Additional controls for procurement contracts:  

The  control  procedures  for  procurement  defined  in  the  Financial  Regulation  are  applied. 
Any procurement contract is established following the established procedure of verification 
by the services of the Commission for payment, taking into account contractual obligations 
and sound financial and general management. Anti-fraud measures (controls, reports, etc.) 
are  foreseen  in  all  contracts  concluded  between  the  Commission  and  the  beneficiaries. 
Detailed  terms  of  reference  are  drafted  and  form  the  basis  of  each  specific  contract.  The 
acceptance  process  follows  strictly  the  TAXUD  TEMPO  methodology:  deliverables  are 
reviewed,  amended  if  necessary  and  finally  explicitly  accepted  (or  rejected).  No  invoice 
can be paid without an "acceptance letter".  

The procedure of ordering and accepting deliverables covers also assets management. Each 
asset  is  ordered  and  consequently  accepted  and  encoded  into  corporate  IT  tool  of  the 
European  Commission  (ABAC  assets)  in  its  acquisition  value.  The  depreciation  is 
automatic based on accounting rules of the Commission.  

Technical verification for procurement 

DG  TAXUD  performs  controls  of  deliverables  and  supervises  operations  and  services 
carried out by contractors. It also conducts quality and security audits of their contractors 
on a regular basis. Quality audits verify the compliance of the contractors' actual processes 
against the rules and procedures defined in their quality plans. Security audits focus on the 
specific processes, procedures and set-up.  

Ex-post administrative control on both operational and financial side 

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30 

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At  the  end  of  each  contract,  the  whole  file  is  verified  by  both  operational  and  financial 
units before it is formally closed. 

3. Additional controls for grants 

The  grant  agreement  signed  by 
the  programme  (customs 
administrations in Member States and Candidate Countries) defines conditions applying to 
the  financing  of  activities  resorting  under  the  grant,  including  a  chapter  on  control 
methods.  All  participating  administrations  engaged  themselves  to  respect  Commission's 
financial and administrative rules on expenses. 

the  beneficiaries  of 

The  activities  for  which  grant  beneficiaries  can  finance  participation  from  the  grants  are 
identified  in  an  online  database  (ART2  –  Activity  Reporting  Tool).  The  Member  States 
report  their  spending  in  the  same  database  which  has  a  number  of  built  in  controls  to 
reduce errors. For instance, Member States can only report expenses for activities to which 
they were invited and can only do so once. 

In addition to the controls that are built-in in the reporting system, DG TAXUD performs 
paper controls and on the spot checks on a sample basis. These controls are performed ex-
post and based on risk-based sampling. 

This control strategy allows keeping the administrative burden on the grant beneficiaries as 
limited as possible and proportionate to the budget allocated and risks perceived. 

The effect of simplification measures, such as replacing real costs by lump sums, is likely 
to  be  marginal  in  terms  of  budgetary  gains.  Its  main  benefit  will  be  at  the  level  of 
efficiency  gains  and  reduced  administraive  burden  both  in  Member  States  and  at  the 
Commission. 

4. Cost and benefits of the controls 

The  controls  established  enable  DG  TAXUD  to  have  sufficient  assurance  of  the  quality 
and regularity of the expenditure and reduce the risk of non-compliance. The depth of the 
assessment  reaches  level  three43  for  Joint  Actions  and  level  four44  for  the  procurement 
contracts.  The  benefit  of  the  above  control  strategy  measures  is  the  reduction  of  the 
potential  risks  below  2%  of  the  overall  budget  and  it  reaches  all  beneficiaries  Any 
additional  measures  for  further risk  reduction  would  result  in  disproportionate  high  costs 
and are therefore not envisaged. DG TAXUD considers there are no variations between the 
present and current programme from control point of view and will apply the same control 
strategy  for  the  2020  programme.  The  costs  entailed  to  implement  the  above  control 
strategy are limited to 2,60 %45 of the budget and is expected to remain at the same ratio.  

The  programme  control  strategy  is  deemed  efficient  to  limit  the  risk  of  non-
compliance to below 2% and proportionate with the risks entailed.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

In addition to the application of all regulatory control mechanisms, the DG will devise an 
anti-fraud strategy in line with the Commission's new anti-fraud strategy (CAFS) adopted 
on 24 June 2011 in order to ensure inter alia that its internal anti-fraud related controls are 

43 
44 

45 

Depth of controls – level three: control with reference to fully independent corroborative information 
Depth of controls – level four: control with reference to and including access to the underlying documentation 
that is available at the stage of the process in question. 
The cost comprises the number of FTE performing the controls multiplied by average staff cost; expenditure 
linked to external audits, expenditure linked to maintenance of ART system. 

EN 

31 

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fully  aligned  with  the  CAFS  and  that  its  fraud  risk  management  approach  is  geared  to 
identify fraud risk areas and adequate responses. Where necessary, networking groups and 
adequate  IT  tools  dedicated  to  analysing  fraud  cases  related  to  the  Customs  2020 
programme will be set up. 

EN 

32 

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3. 

3.1. 

Heading of 
multiannual 
financial 
framework 

Heading of 
multiannual 
financial 
framework 

1 

1 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

Diff./non-
diff. 
(46) 

from 
EFTA47 
countries 

from 
candidate 
countries48 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

14.04.03 – Customs 2020 

Diff. 

NO 

YES 

NO 

NO 

14.01.04.05 

Customs  2020  –  Expenditure  on 
administrative management 

Non-diff

NO 

NO 

NO 

NO 

46 
47 
48 

Diff. = Differentiated appropriations / Non-diff. = Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure49 

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

1 

Smart and Inclusive Growth 

EUR million (to 3 decimal places) 

DG: TAXUD 

(cid:121) Operational appropriations  

14.0403 – Customs 2020 

of 

Appropriations 
administrative 
 from the envelope for specific programmes50  
14.010405 

an 

TOTAL appropriations 
for DG TAXUD 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

Year 
2021-
2023 

Commitments 

Payments 

(1) 

(2) 

nature 

financed 

Commitments 

Payments 

(3) 

=1+1(a
)+3 

=2+2(a
)+3 

71.740 

73.860 

75.970 

78.080 

80.300 

82.610 

84.820 

14.348 

47.055 

62.779 

68.162 

70.083 

72.072 

74.103 

138.778 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

71.840  73.960  76.070  78.180  80.400  82.710  84.920 

547.380 

547.380 

0.700 

548.080 

14.448  47.155  62.879  68.262  70.183  72.172  74.203  138.778 

548.080 

49 
50 

Expenditure is expressed in current prices. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research. 

EN 

34 

EN 

 
  
 
 
 
 
 
  
 
 
 
  
  
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

71.740 

73.860 

75.970 

78.080 

80.300 

82.610 

84.820 

14.348 

47.055 

62.779 

68.162 

70.083 

72.072 

74.103 

138.778 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

TOTAL appropriations  
under HEADING 1 
of the multiannual financial framework 

Commitments 

=4+ 6 

71.840  73.960  76.070  78.180  80.400  82.710  84.920 

Payments 

=5+ 6 

14.448  47.155  62.879  68.262  70.183  72.172  74.203  138.778 

547.380 

547.380 

0.700 

548.080 

548.080 

EN 

35 

EN 

 
  
  
  
  
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to 3 decimal places) 

DG: TAXUD 

(cid:121) Human resources  

10.096 

10.096 

10.096 

10.096 

10.096 

10.096 

10.096 

(cid:121) Other administrative expenditure  

0.390 

0.390 

0.390 

0.390 

0.390 

0.390 

0.390 

TOTAL DG TAXUD 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

70.672 

2.730 

73.402 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

73.402 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

82.326 

84.446 

86.556 

88.666 

90.886 

93.196 

95.406 

Payments 

24.934 

57.641 

73.365 

78.748 

80.669 

82.658 

84.689 

138.778 

621.482 

621.482 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

Year 
2021-
2023 

EN 

36 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
  
 
–  The proposal requires the use of operational appropriations, as explained below: 

Estimated impact on operational appropriations  

Commitment appropriations in EUR million (to 3 decimal places) 

Indicate 
objective
s and 
outputs  

(cid:216) 

2014 

2015 

2016 

2017 

 2018 

2019 

2020 

TOTAL 

OUTPUTS 

Type of 
output51 

t
s
o
c

e
g
a
r
e
v
A

t
u
p
t
u
o

e
h
t

f
o

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Cost 
s
t
u
p
t
u
o

f
o

r
e
b
m
u
N

  Total  
s
t
u
p
t
u
o

cost 

f
o

r
e
b
m
u
n

l
a
t
o
T

Specific Objective: To support the fucntioning of the customs union, in particular through cooperation between participating countries, their customs administrations, their officials and external experts 

IT 
Capacity 
Building 

Joint 
Actions 

Human 
Capacity 
Building 

Number 
of IT 
Contract
s
Number 
of 
events 
organise
Number 
of 
trainings 

Around 
30 

 57.360 

Around 
450 

 11.570 

Tbc 

2.810 

59.47
0 

11.57
0 

61.58
0 

11.57
0 

63.70
0 

11.57
0 

 2.810 

65.91
0 

11.57
0 

68.22
0 

11.57
0 

70.44
0 

11.57
0 

 446.680 

 80.990 

 19.710 

2.820 

2.820 

2.820 

2.820 

2.810 

TOTAL 
COST 

 71.740 
104.400 

73.86
0 

75.97
0 

78.08
0 

80.30
0 

82.61
0 

84.82
0 

547.380 

51 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

EN 

37 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on appropriations of an administrative nature 

3.2.2.1.  Summary  

–  The  proposal  requires  the  use  of  administrative  appropriations,  as  explained 

below: 

EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

10.096 

10.096 

10.096 

10.096 

10.096 

10.096 

10.096 

70.672 

0.390 

0.390 

0.390 

0.390 

0.390 

0.390 

0.390 

2.730 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

73.402 

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 552 
of the multiannual 
financial framework  

Human resources  

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

TOTAL 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

10.486 

73.402

52 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.2.   Estimated requirements of human resources  

–  The proposal requires the use of human resources, as explained below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year
2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

14 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

14 01 01 02 (Delegations) 

14 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

65 

65 

65 

65 

65 

65 

65 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)53 

14 01 02 01 (CA, INT, TA, SNE from the 
"global envelope") 

14 01 02 02 (CA, INT, JED, LA and SNE in the 
delegations) 

14 01 04 05 54 

- at Headquarters55 

- in delegations  

14 01 05 02 (CA, INT, SNE - Indirect research) 

10 01 05 02 (CA, INT, SNE - Direct research) 

Other budget lines (specify) 

TOTAL 

17 

17 

17 

17 

17 

17 

17 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

82 

14 is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

Programme  management  activities,  stricto  senso56,  and  programme  implementation 
activities  such  as  studies,  development,  maintenance  and  operation  of  European  IT 
systems  

External personnel 

Assistance  to  programme  implementation  activities  such  as  studies,  development, 
maintenance and operation of European IT systems 

53 

54 
55 

56 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 
The number of posts involved in programme management activities strictu senso is limited to 18.  

EN 

39 

   EN 

 
 
                                                 
3.2.3.  Compatibility with the current multiannual financial framework  

–  The proposal is compatible with the 2020 multiannual financial framework. 

3.2.4.  Third-party contributions 

–  The proposal does not provide for co-financing by third parties  

3.2.5.  Estimated impact on revenue 

–  The proposal has potentially financial impact on revenue: 

• 

• 

The impact  of  the programme may indirectly affect the revenue of the EU as 
improved and more efficient customs are expected to lead, amongst others, to 
more customs duties being collected. Such effect is however not quantifiable. 

In  case  the  penalties  (mentioned  in  article  13)  are  applied,  these  will  be 
budgeted as general revenue for the EU budget 

EN 

40 

   EN