COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE Developing the EU Customs Union and Its Governance
Date: 2016-12-21
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: customs cooperation, customs formalities, customs harmonisation, customs inspection, customs union, external border of the EU, fight against crime

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 21.12.2016  COM(2016) 813 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE Developing the EU Customs Union and Its Governance  
 
 
1.  INTRODUCTION  

This Communication addresses the question of how the Commission and the Member States 
can  act  in  partnership  to  ensure  that  the  operation  of  the  Customs  Union  makes  the  best 
possible contribution to EU prosperity and security. 

The Customs Union, which is now approaching 50 years of operation, was an early example 
of successful integration in the EU. It created the conditions for establishing the single market 
and  served  as  a  stable  foundation  for  economic  integration  and  growth.  A  strong  and  well 
managed Customs Union can enable the EU to prosper and develop competitive businesses, to 
protect its revenue sources and protect the public against terrorist, health, environmental and 
other threats. As in many policy areas success requires addressing tensions between individual 
Member States concerns and the strategy to achieve common goals. 

In  an  era  where  terrorism  and  other  serious  crimes  operate  on  a  cross-border  and  trans-
national  basis,  customs  authorities  are  increasingly  called  upon,  as  law  enforcement 
authorities  dealing  with  borders  control,  to  carry  out  non-fiscal  tasks  aimed  at  improving 
internal EU security. The role played by customs in the security area is particularly relevant in 
preventing terrorist organisations from moving their funds and in disrupting their sources of 
revenue,  as  recognised  in  the  Commission  Action  Plan  for  strengthening  the  fight  against 
terrorist  financing1.  However,  more  must  be  done  to  coordinate  the  different  policy  areas 
involved  in  border  management  and  enhance  the  cooperation  and  synergies  between  the 
various  law  enforcement  authorities  to  contribute  to  an  effective  and  sustainable  Security 
Union. Better information exchange is key in that respect. 

Rapidly  changing  technologies  and  business  models,  allied  to  increasing  volumes  of  world 
trade, a persistent transnational crime and security threat, an expanding and deepening EU and 
the  increasing  number  of  tasks  to  be  performed  by  customs  have  all  put  pressure  on  the 
working  of  the  Customs  Union.  This  has  led  to  a  major  reworking  of  the  legislative 
framework  through  the  adoption  and  implementation  of  the  Union  Customs  Code  (UCC)2. 
The aim was to create a framework which enables honest and legitimate European businesses 
to  face competition in the global economy on a day-to-day basis without being hindered by 
unnecessary red tape, while being supported by unified, computerised and efficient customs 
services across the EU.  

While customs legislation is adopted at EU level, its implementation is the responsibility of 
the  Member  States  via  their  national  customs  administrations.  The  nature  of  the  Customs 
Union,  however,  creates  interdependence  between  national  administrations  which  must  be 
recognised  if  the  maximum  benefits  are  to  be  obtained.  The  implementation  challenge  calls 

1 COM(2016) 50 final 
2 Regulation (EU) No 952/2013 of 9 October 2013 laying down the Union Customs Code (recast). The new legislative 
framework introduces a requirement for all interactions between customs and traders as well as between the different customs 
authorities to be made using electronic data processing systems. This reflects modernisation and increased cost effectiveness 
in the medium term in terms of administration and trade facilitation, but it also enables a truly joined-up approach across the 
Union in the management of trade flows. 

2 

 
 
 
                                                            
for  equivalence  of  results  by  customs  authorities  operating  in  different  geographical, 
budgetary and organisational conditions.  

Moreover,  the  interlinks  between  customs  and  other  policy  areas  related  to  security  and 
border  control  call  for  a  more  joined-up  and  cross-sectorial  approach  aimed,  inter  alia,  at 
exploiting the full potential of closer cooperation between customs authorities and other law 
enforcement authorities, including through synergies and interoperability between information 
systems.   

Therefore,  for  the  Customs  Union  it  is  now  crucial  to  ensure  that  the  UCC  can  be 
implemented in an effective and efficient way by customs administrations that act as though 
they were one, at the same time cooperating effectively with administrations responsible for 
other  relevant  policies  with  border  and  internal  security  implications.  This  is  crucial  for  the 
correct  implementation  of  the  new  UCC  which,  given  its  emphasis  on  fully  electronic 
communication between the customs administrations and with trade, would only be possible 
on the basis of EU wide interoperable IT systems and uniform application of rules by all EU 
customs  administrations.  This  is  also  crucial  in  the  current  political  context,  given  the  role 
played by customs in protecting EU citizens. 

Within  the  existing  institutional  framework,  this  requires  a  revitalised  partnership  between 
Member States and the Commission in order to put in place: 

  a  shared  overall  management  vision  for  the  Customs  Union  between  all  Member 
States  and  the  Commission  to  ensure  more  flexible  and  effective  cooperation  and 
better rule-making; 

  more effective enforcement of rules through better co-ordination of, and co-operation 

between, operational services on the ground;  

  a  stronger  role  for  customs  in  ensuring  joined-up  border  management  and  law 
enforcement, developing closer cooperation and enhanced information exchange with 
administrations involved in other relevant policy areas; 

  a long-term IT strategy to provide cost-effective processes for customs administrations 

and business and synergies with other relevant policy areas; 

  strengthened  performance  of  customs  administrations  everywhere  in  the  EU  through 
the  expanded  use  of  best  practices  and  innovative  shared  solutions,  including 
addressing their financial needs.  

2.  DEVELOPING GOVERNANCE  

2.1.  Governance of policy formulation and implementation 

The UCC’s adoption and application as of 1 May 2016 has strengthened and modernised the 
Customs  Union's  legal  framework.  The  UCC  completes  the  shift  by  customs  to  a  paperless 

3 

 
 
 
and fully electronic and interoperable environment with core values of simplicity, service and 
speed.  The  UCC  work  programme3  adopted  in  2014  and  updated  in  20164  provides  a 
timetable  for  the  deployment  of  the  supporting  IT  systems  during  a  transitional  period, 
building on a complex existing network of IT systems operated by the Member States and the 
Commission.  

In  the  next  years  of  the  UCC,  priority  will  need  to  be  given  to  the  effective  and  uniform 
application of the Code and rapid amendment, where necessary, of the detailed technical acts 
that underpin its overall structure.  

The degree of integration and harmonisation of laws now achieved in the Customs Union and 
the  interdependence  of  customs  services  make  it  necessary  to  have  frequent  policy  co-
ordination involving all Member States and a high degree of operational cooperation between 
Member States.  

A variety of bodies deals with different individual aspects of the functioning of the Customs 
Union.  However,  there  is  no  successful  overarching  co-ordination  of  policy  and  operational 
aspects. A specific area where coordination is needed is the integration of strategies in other 
policy areas that impact and expand customs' tasks.  

Until  now, much  of  the  policy  co-ordination  for  the  Customs  Union  has  been  done  through 
the  Customs  Policy  Group  (CPG),  an  informal  expert  group  set  up  by  the  Commission  53 
years ago. This group brings together the heads of customs administrations but has no formal 
legal decision making powers. Even less formal are the meetings of the Directors-General of 
the national customs administrations in what are called Club meetings.  

In its role of coordinating Member States' policies and negotiating and adopting EU law, the 
Council  of  the  EU  has  its  own  governance  structure  established  to  organise  its  work  in 
different areas. Under its competitiveness configuration, the customs-related work is handled 
primarily in  two  Council  working  parties  –  one  on  the  Customs  Union  and  one  on customs 
cooperation  –  but  arguably  without  a  structured  vision  of  policy  development  and  in  a 
somewhat ad-hoc manner. Furthermore, a new body bringing together the Directors-General 
of customs administrations has been recently established in the Council. Its intended role is to 
remedy  some  of  the  above  and  discuss  strategic  matters  and  ensure  coordination  with  other 
policy areas in the Council. 

The Commission believes that the operational vision that needs to be created and maintained, 
while respecting the institutional arrangements and responsibilities, has to be: 

  strategic  –  tackling  cross-cutting  issues  such  as  security,  fight  against  terrorism 
financing,  fraud  or  e-commerce,  at  high  level  with  the  technical  aspects  discussed 
separately at the appropriate technical level; 

3 Commission Implementing Decision (EU)  2014/255 of 29 April 2014 establishing the Work Programme for the Union 
Customs Code   
4 Commission Implementing Decision (EU) 2016/578 of 11 April 2016 establishing the Work Programme relating to the 
development and deployment of the electronic systems provided for in the Union Customs Code 

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 

joined-up  with  other  policies  that  need  to  be  implemented  at  the  border,  both  those 
relating  directly  to  the  movement  of  goods  and  those  supported  by  customs  in 
connection with  movement of people; 

  content rich – providing orientation on issues such as the development of long-term 
IT strategy, performance review based on key performance indicators, the delivery of 
common risk management for security risks, etc.  

For  its  part,  the  Commission  will  formalise  and  develop  the  role  of  the  CPG  to  focus  on 
providing  the  input  to  establish  overarching  co-ordination  of  policy  and  operational  aspects 
and to  set  clear  priorities  for the future (to this end,  rules  of procedure for the CPG will be 
drawn  up).  To  support  this  aim,  as  part  of  the  Customs  Union  performance  project,  the 
Commission services will develop together with the Member States structured information on 
key aspects of the functioning of the Customs Union (see section 2.2 below).  

In  particular,  the  Commission  will  look  to  the  CPG  for  support  in  setting  operational 
objectives across the Union based on challenges the Customs Union is and will be facing and 
ensuring their overall coherence. The CPG will also be organised around a long-term agenda 
established  in  partnership  with  the  Member  States.  The  agenda  will  focus  on  cross  cutting 
issues at the strategic level. 

The Commission is also mindful of the important role that trade has to play in drafting and 
implementing  efficient  customs  procedures  that  safeguard  both  the  national  and  the  EU 
financial interest5. At present the Commission is advised by an expert group called the Trade 
Contact  Group  and  equivalent  consultative  bodies  are  in  place  at  national  level.  Recent 
experience  in  the  consultations  on  the  implementing  legislation  for  the  UCC  has  also 
demonstrated  the  usefulness  of  joint  meetings  between  traders,  national  administrations  and 
the  Commission.  The  Commission  intends  to  continue  and  reinforce  its  practice  in  order  to 
bring  more  actors  into  the  process  and  to  focus  consultations  on  key  aspects  of  the  balance 
between trade facilitation, compliance needs and protection. 

The Commission will submit a regular biennial report to the Council and Parliament, building 
on the results of the Customs Union work and suggesting the priorities/orientation for future 
development of the Customs Union and for ensuring better integration with other EU policy 
priorities. The report could serve as a basis for a regular high level debate on the working of 
the Customs Union in the Council. This could determine the long-term strategic direction for 
the Customs Union, but also provide a framework for discussion and co-operation to support 
work in  the many  interrelated areas e.g. detection and  prevention  of cross-border crime  and 
terrorism risk.  

2.2. Governance of policy monitoring and analysis 

The maintenance of an up-to-date legislative environment requires knowledge of its impact.   

5 Customs duties are EU own resources. 

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Operational  decisions  based  on  cross-border  co-operation  also  require  information  on 
everyday policy implementation. 

The  ‘Customs  Union  performance’  project  that  the  Commission  and  Member  States  are 
working on is a detailed performance measurement project with key performance indicators 
which  are  based  on  the  strategic  objectives  of  the  Customs  Union6.  To  put  in  place  the 
necessary  implementation  information  and  management  tool,  the  Commission  will  examine 
the possibility of establishing a new legal basis for a set of key performance indicators and for 
the  reporting  of  data  to  create  them.  This  would  guide  policy  decisions  and  provide  a 
framework  for  performance/implementation  evaluation.  The  Customs  Risk  Management 
Framework  evaluation  cycle  will  also  contribute  in  relation  to  customs  controls  and  the 
implementation of the EU strategy and Action Plan for customs risk management7.  

In order to assist Member States with the correct application of the EU customs legislation, 
the monitoring actions under the Customs 2020 programme and the related processes will be 
revisited to identify and rectify shortcomings, and a revised policy on monitoring will be put 
forward. 

The Commission will: 

 

 

formalise  and  develop  the  role  of  the  Customs  Policy  Group  to  focus  its  work  on 
overall co-ordination of policy and operational aspects within the limits of the current 
institutional framework; 
increase joint meetings between the Commission, national administrations and traders 
and  review the mechanism for consultation of trade; 

  submit a regular biennial report to the Council and Parliament on the results of the 

 

Customs Union work to allow for a regular debate on  policy priorities; 
instruct  its  services  to  establish  a  set  of  key  performance  indicators  and,  if 
appropriate,  following  consultation  with  stakeholders  propose  a  new  legal  basis  to 
support the system of performance measurement.  

3.  MAJOR ISSUES GOVERNANCE STRUCTURES HAVE TO TACKLE 

The  Commission  has  identified  three  major  objectives  that  require  strategic  and  coherent 
action. They are: 

  implementing a vision of how customs authorities can work to achieve fully effective 

and coherent action; 

  creating  and  implementing  a  shared  vision  between  customs  and  other  competent 
authorities  on  the  management  of  the  EU  border  and  the  coordination  of  their 
respective activities; 

6 COM(2008) 169 final of 1 April 2008 as confirmed by Council Conclusions on the progress on the Strategy for the 
Evolution of the Customs Union of 19.3.2013 (2013/C 80/05) 
7 COM(2014) 527 final 

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  tackling the major resource challenges of the Customs Union. 

3.1. Customs authorities acting as one 

The  process  of  implementing  the  UCC  is  a  major  challenge  for  Member  States  and  the 
Commission  alike.  Member  States  need  to  act  as  one  in  the  management  of  the  Customs 
Union to ensure that national administrations, businesses and the public obtain the maximum 
advantages. The Commission sees four main priorities, all supported by a continuous sharing 
of best practices. 

3.1.1.  Common understanding of how to apply EU laws 

The first task is to ensure that all stakeholders agree on a common understanding of how to 
apply the EU legal provisions in the Member States. The common understanding will be also 
important  as  the  Commission  develops  the  detail  of  innovative  concepts  such  as  centralised 
clearance or self-assessment, together with stakeholders. 

On  the  basis  of  joint  work  with  the  Member  States  and  in  collaboration  with  trade,  the 
Commission  will  draw  up  a  common  body  of  guidance  building  on  the  existing  non-
legislative guidance. In this way it will ensure that all stakeholders have a clear view of how 
to  apply  the  law.  The  Commission  services  will  also  provide  training  support  material  for 
national staff in modern formats such as multi-linguistic eLearning and eBooks. 

3.1.2.  Human resources competency building 

The second task relates to the need for the customs administrations to make the best use of the 
120.000 customs staff. To achieve this, they need consistent quality standards and appropriate 
training to ensure uniform application of regulations and initiatives.  

Closer cooperation on human resource development and training should include the use of the 
EU  Competency  Framework  as  a  basis  for  national  customs  administrations'  training 
concepts,  staff  development  processes  and  for  the  establishment  of  joint  training  centres  in 
Member States. The objective is to raise the level of expertise and performance consistently 
across  all  EU  customs  administrations  and  with  traders  and  thus  contribute  to  public 
administrations modernisation and administrative capacity building process. The Commission 
intends  to  present  an  Action  Plan  listing  the  activities  to  be  undertaken  to  enhance  human 
resources development.  

3.1.3.  IT systems governance, architecture and financing  

The third task is to oversee the complex process of: 

  upgrading or introducing and operating the new European IT systems provided for in 

the UCC; 

  ensuring alignment of the process of upgrading Member States IT systems which will 
be impacted by the changes introduced by the UCC. In addition, the approach to the 
customs IT systems has to be aligned in the interest of interoperability.  

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The existing instruments will help finalise projects that have already been agreed. However, 
they do not as such deal with the longer term issues of how to avoid duplication of effort and 
resources in the creation or replacement of old IT systems in each of the Member States. Nor 
do  they  deal  with  the  issue  of  long-term  management  of  an  increasingly  sophisticated  EU-
wide IT architecture where continuity and integrity of the links and transmission systems, as 
well as availability are becoming more and more critical.  

The cost of developing and maintaining the UCC's IT systems over the years to come will be 
significant.  The  Commission  alone  has  a  budget  under  Customs  2020  programme  of  some 
EUR  380 million8  to  be  spent  on  the  development  and  maintenance  of  systems  that  are 
already planned. Member States costs when taken together will be significantly greater. These 
investments will enable all stakeholders to tap the full potential of the Customs Union. In this 
context, rationalisation, avoidance of duplication and application of best practice are essential. 
This is particularly important if major new projects are to fully provide the desired efficiency 
gains such as providing simultaneous support to customs procedures and to compulsory risk 
analysis. If maximum synergies and efficiency gains are to be obtained, all players will need 
to commit to long-term solutions. 

At present, not all Member States share a common vision of how and when to use common 
systems. Some prefer instead what is called 'hybrid system architecture' which enables them 
to opt in to shared EU services or to maintain national solutions on their own or in parallel. 
However, in the longer term, and in the interests of all, the governance structures will have to 
deliver a common view on which services need to be developed and maintained at EU level 
and on their relationship with national systems, taking into account the budgetary constraints 
at  EU  level  and  the  need  to  ensure  effective  governance  and  appropriate  ownership  of  the 
systems.  At  present  this  is  very  much  done  on  a  case-by-case  basis.  Absence  of  a  common 
vision makes it harder for Member States who wish to go for common solutions to benefit to 
the maximum. It also reduces the effectiveness of action by the Commission.  

The Commission considers that there is a fundamental need for a review of the architecture, 
management and funding of customs networks and databases. This should include examining 
relevant  initiatives  in  other  EU  policy  areas  and  the  action  taken  by  the  Commission 
following the April 2016 Communication on Stronger and Smarter Information Systems for 
Borders and Security9. There may be a case for establishing a permanent structure to manage 
the  different  parts  of  the  IT  infrastructure.  This  becomes  all  the  more  important  given  the 
ambitions of the UCC to ensure seamless customs operation across the EU and equivalence of 
results based on strengthened risk analysis capacity in the Member States addressing national 
and transnational risks in the common risk management framework. This is essential to allow 
customs  to  deliver  effectively  on  its  responsibility  for  managing  risks  and  in  particular  for 
security risk assessment of all goods crossing EU external borders. 

8 The C2020 IT part of the budget for 2015-2020 (adjusted planned amounts) 
9  COM(2016) 205 final 

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The Commission will start a process of examining the future options for the development and 
maintenance  of  customs  IT  systems  with  a  view  to  preparing  a  debate  in  advance  of  future 
decisions on the next Multiannual Financial Framework. To plot a viable long-term plan, the 
issue  of  possible  synergies  with  existing  agencies10  needs  to  be  looked  at  in  the  analysis  of 
further  co-operation  between  administrative  services  dealing  with  border  management  and 
law  enforcement.  As  set  out  in  the  Communication  on  Stronger  and  Smarter  Information 
Systems for Borders and Security, the Commission is exploring synergies and possibilities for 
interoperability between information  systems and their corresponding infrastructures for EU 
customs operations, border management and law enforcement.  

3.1.4.  Reinforcement of co-operation between customs authorities  

Fourthly, the Commission will support more rapid operational co-operation based on the use 
of  best  practices  and  the  existing  common  systems,  in  particular  where  groups  of  Member 
States may be facing problems that are not faced by all. To this end, an innovative instrument 
called  an  expert  team  in  the  Customs  2020  programme  allows  the  creation  of  flexible 
structures. One possible use of such expert teams is to further both EU-wide and regional co-
operation between national customs administrations in order to support daily operational work 
as  identified  by  the  Member  States.  Current  examples  include  cooperation  to  manage  the 
eastern  and  south-eastern  land  border11  and  making  best  use  of  resources  in  customs 
classification issues. 

The  best  practice  sharing  will  also  need  to  continue  to  be  supported  via  the  Customs  2020 
programme and its successor.  

The Commission will:  

  establish a coherent body of guidance on the application of the Union Customs Code; 
  present  an  Action  Plan  listing  the  activities  to  be  undertaken  for  enhancing  human 

resources development; 

  perform a review of the architecture, management and funding of IT customs networks 

and databases and their relationship with other EU networks; 

  assess  the  value  added  and  possible  long-term  benefits  of  establishing  a  permanent 
structure to manage IT infrastructure in the context of preparing the next Multiannual 
Financial Framework, as well as assess possible synergies with existing agencies; 
  promote the use of expert teams to support operational cooperation between customs 

on both EU-wide and regional issues. 

10 In particular with the European agency for the operational management of large-scale IT systems in the area of freedom, 
security and justice (eu-LISA).  

11 CELBET - Customs Eastern and South-Eastern Land Border Expert Team 

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3.2. Coordination of different policy areas involved in border management 

3.2.1.  Overall border management 

Customs perform a variety of different functions in policy areas other than trade policy and 
tariff application (notably through customs controls and risk management). Such areas include 
security,  the  fight  against  terrorism,  product  safety,  health,  intellectual  property  rights, 
environmental protection and market protection, dual-use goods and firearms. 

The Commission will continue to implement its Action Plan to strengthen the fight against the 
financing  of  terrorism12.  The  main  focus  for  customs  activity  in  the  Action  Plan  is  on 
disrupting the sources of revenue of terrorist organisations, concentrating on cash controls and 
financing  through  illicit  trade  in  (cultural)  goods.  The  Commission  has  today  presented  a 
proposal  for  a  Regulation  on  controls  of  cash  entering  or  leaving  the  Union  which  would 
repeal  the  existing  Cash  Control  Regulation13. Moreover,  work  is  ongoing  on  a  legislative 
initiative to regulate the import of cultural goods (with particular stress on terrorist financing) 
which is foreseen to be adopted by June 2017. To feed the preparatory work, a study has also 
been commissioned to examine the various challenges EU customs face over illicit trafficking 
in  cultural goods and  to identify possible policy options. The Commission  will  also step up 
operational  cooperation  against  firearms  trafficking  with  neighbouring  countries  (such  as 
Middle East and North Africa, Western Balkan and Ukraine). 

The Commission has put considerable efforts into encouraging co-operation between different 
administrations on aligning procedures where other policy areas are involved. On security and 
environmental  protection,  the  Commission  has  taken  steps  to  ensure  early  involvement  of 
customs in the drafting of EU legislation.  

The Commission services will provide a toolbox to help policy and law makers involved in 
EU  law  making  to  ensure  that  rules  can  be  applied  by  customs  and  other  relevant 
administrations in the Member States more effectively and without undue burdens. 

The  Commission  services  will  also  study  the  interaction  with  all  relevant  policy  areas 
concerned  by  border  management  to  identify  further  possibilities  for  a  more  coherent  and 
joined-up approach building on the specific aspects set out in the following paragraphs.  

3.2.2.  Co-operation of customs and other law enforcement authorities 

Cooperation  on  customs  and  other  law  enforcement  is,  amongst  others,  covered  by  the 
Customs Cooperation Working Party in the Council. The planning of these activities and their 
evaluation  must  be  fully  integrated  into  the  overall  governance  of  Customs  Union.  The 
Commission's  biennial  report  on the  results  of  the  work  of  Customs  Union  will  provide  the 
connection  with  the  work  of  the  Customs  Cooperation  Working  Party  and  other  Council 
bodies  in  this  area.  The  Commission  will  seek  to  coordinate  the  joint  law  enforcement 

12 COM(2016) 050 final 
13 Regulation (EC) No 1889/2005 on controls of cash entering or leaving the Community. The new Regulation will, amongst 
others, add control possibilities on cash sent through post and freight, allow the authorities to act upon lower amounts of cash 
where there are suspicions of illicit activity, and expand the definition of 'cash' to include, inter alia, also gold.  

10 

 
 
                                                            
activities  between  customs  and  other  authorities  with  the  Council  on  this  basis  and  without 
prejudice to the Treaty arrangements.   

Closer  cooperation  is  in  place  with  EU  security  and  law  enforcement  agencies,  such  as 
EUROPOL  and  with  the  European  Border  and  Coast  Guard14.  Such  cooperation  will  be 
further pursued and enhancing information exchange is key in that respect. Close coordination 
with  other law enforcement activities pursued under the EU Policy Cycle for organised and 
serious international crime will be continued. 

Regulation  (EU)  2016/1624  creates  a  solid  basis  for  a  well-structured  inter-agency 
cooperation  between  customs  and  border  guards  at  the  European  Union  and  national  level. 
Inter-agency  cooperation  is  one  of  the  core  elements  in  the  European  Integrated  Border 
Management  Strategy.  Cooperation  will  be  developed  without  prejudice  to  the  existing 
competences of the Commission and of the Member States. 

In  the  specific  area  of  national  cooperation  between  border  guards  and  customs,  the 
Commission  has  established guidelines that were tested in  the recent migration crises at the 
EU external borders. They set out a practical approach for strengthening cooperation between 
the  two  authorities.  Bearing  in  mind  the  differences  in  organisational  structure  and 
competences in Member States, the guidelines describe several areas of co-operation, such as 
synchronisation of checks, exchange of information and joint operations, and distinguish three 
modules based on the level of co-operation.  

The Commission will update the guidelines based on the feedback received from countries on 
their experience in the planned reporting exercise. The feedback should include tools used and 
examples of good practices, as well as the results of on-the-spot visits. This will contribute to 
strengthening the co-operation between the two authorities.  

3.2.3.  Single Window 

The Commission is looking into a workable solution for the creation of an EU Single Window 
environment that would bring together the different interactions between administrations and 
trade  over  movement  of  goods  into  and  out  of  the  EU.  The  single  window,  being  a  trade 
facilitation  concept,  enables  cross-border  traders  to  submit regulatory  documents  at  a  single 
(electronic) location and/or via a single entity. 

In  view  of  the  complexity  of  the  Single  Window  concept  and  the  number  of  ongoing  IT 
customs developments related to UCC, the EU approach to the Single Window environment 
for customs will have a specific and targeted focus in the short term, consisting in developing 
the  EU  level  certificates  database.  The  interconnection  between  the  database  and  national 
customs declarations systems will allow for an automated verification of the certificates. The 

14  European  Border  and  Coast  Guard  (comprising  the  Agency  and  national  authorities  of  Member  States  which  are 
responsible for border management) established by Regulation (EU) 2016/1624 which foresees enhanced cooperation of the 
European Border and Coast Guard with the Commission, and national customs administrations. As regards Europol, regular 
contacts  between  experts  from  Europol's  strategic  analysis  team  and  DG  TAXUD's  risk  management  team  have  been 
established to explore possibilities for the exchange of strategic information. 

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Commission will make this work a priority and will draw up a long-term vision for the Single 
Window concept. At the same time, national maritime single windows are being put in place 
to  address  the  reporting  formalities  of  ships  in  the  European  ports  via  e-manifest 
submission15.  

3.2.4.  Customs and tax cooperation  

One important aspect of customs work is to collect revenue, such as customs duties, but also 
VAT  and  excise  duties  on  imports  of  goods.  Therefore,  the  collection  of  taxes  requires 
attention  as  part  of  the  implementation  of  the  UCC.  In  addition,  the  Commission 
Communication on a VAT Action Plan16 proposes to reinforce the cooperation between tax, 
customs  and  other  authorities  to  fight  VAT  fraud.  As  legislation  and  structures  for 
cooperation exist on both tax and customs sides, it is now more than ever necessary to find 
practical  ways  of  alignment  and  creating  interfaces  between  the  two  in  an  efficient  and 
effective way. These could include: 

  holding a strategic discussion between the heads of tax and customs administrations; 
  a model memorandum of understanding on tax and customs cooperation as was done 

for customs cooperation with market surveillance authorities; 

  a joint tax-customs forum on the tax implications of UCC implementation; 
  automated  access  of  customs  to  the  VIES17  database  and  other  information  for 

customs risk management and controls.  

The Commission will: 

  provide via its services a toolbox to help policy and law makers involved in EU law 
making  to  ensure  that  rules  can  be  applied  by  customs  and  other  relevant 
administrations in the Member States more effectively and without undue burdens; 
  develop co-operation between administrations dealing with border management issues 
in  line  with  the  European  integrated  border  management and  develop  possible 
synergies with existing agencies;  

  update  the  guidelines  on  cooperation  of  customs  and  border  guards  based  on  the 
current  reporting  exercise  and  continue  to  develop  cooperation  with  the  European 
Border and Coast Guard and Europol in managing crime and terrorism risks as well 
as  coordination  with  law  enforcement  activities  under  the  EU  Policy  Cycle  for 
organised and serious international crime; 

  coordinate  with  the  Council  over  the  integration  of  joint  law  enforcement  activities 
between customs and other authorities into Customs Union overall governance;   
look for a workable solution for the creation of an EU Single Window environment;  
integrate  the  follow  up  of  the  Communication  on  a  VAT  Action  Plan  into  customs 
policy, particularly by improving tax-customs cooperation on the ground. 

 
 

15 Directive 2010/65/EU 
16 COM(2016) 148 final 
17 VAT Information Exchange System  

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3.3. Tackling major resource challenges of the Customs Union 

Customs  authorities  find  themselves  under  constant  pressure  both  on  human  and  financial 
resources.  On  top  of  this,  their  crucial  role  in  protecting  the  single  market,  the  safety  and 
security of the European Union and their important role in tax collection are not always fully 
understood. The current legislative framework provides for the Member States to retain 20% 
of customs revenue as collection costs. However, it depends on the Member States to decide 
on the allocation for customs financing.  

The  gradual  introduction  of  integrated  risk  management  into  EU  customs  legislation  since 
2005 has demonstrated the willingness of Member States to rethink the traditional approach to 
customs.  This  involves  shifting  progressively  from  systematic  documentary  and  physical 
controls to risk-based methods using all modern tools available, building in particular on the 
use of EU common risk criteria and intensive sharing of risk information. Together with the 
implementation of the UCC, this will have a significant impact on IT expenditures at national 
and EU level.   

3.3.1.  Equipment 

A  particular  funding  issue  is  that  of  non-intrusive  detection  and  laboratory  equipment. 
Modern  efficient  equipment  such  as  x-ray  scanners  are  a  relatively  expensive  but  cost-
efficient means of control. Mobile scanners are particularly useful as they can be targeted to 
specific areas to respond to sudden increases in risk. They can also be shared or used to boost 
other Member States' capabilities in times of particular difficulty at specific borders, with the 
same  applying  to  high  technology  laboratory  equipment  required  to  support  or  validate 
physical controls. The expert teams mentioned in point 3.1.4 above could be used to support 
this sharing of equipment.  

The  existing  Customs  2020  programme  does  not  allow  funding  of  such  equipment. 
Nevertheless, when the Council adopted the programme, it called on the Commission to study 
the possibility of including such funding in future programmes by 201818. The Commission 
intends to address this issue in the impact assessment it will carry out for preparing the next 
generation of programme in the context of the next Multiannual Financial Framework. In the 
meantime  it  will  continue  to  support  Member  States  who  have  a  demonstrated  need  for 
funding that is eligible under the Structural Funds.  

The Commission will: 

  consider  and  evaluate  the  possibility  of  financing  equipment  needs  from  future 
Commission  financial  programmes  in  impact  assessment  of  the  next  generation  of 
Customs programme. 

18 Council statement 16094/13 ADD 1 REV 2 

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4.  CONCLUSION 

The  Commission  believes  that  the  new  UCC  framework  is  an  important  step  in  the 
strengthening  the  EU  and  its  Customs  Union.  The  strong  risk-management  aspect  in  it  will 
also allow reinforcement of customs' increasing role in the security of the EU internal market. 
However, the gradual phasing-in of the full advantages of the UCC and the improvements in 
controls via risk management must now be accompanied by a focus on the governance of the 
Customs Union as a whole to ensure uniformity and effectiveness in its functioning. Work on 
the  governance  of  the  Customs  Union  has  to  concentrate  on  strengthened  co-operation 
between  Member  States'  customs  authorities  within  the  current  institutional  framework.  It 
must also be based on a common understanding of the rules and will involve working closely 
and  exchanging  information  with  administrations  responsible  for  other relevant  policy  areas 
and  other  stakeholders  involved  in  border  management  and  law  enforcement,  also  to 
contribute to implementing the European Agenda on Security and to an effective and genuine 
Security Union.   

In this Communication, the Commission has detailed a number of areas where action needs to 
be taken. The main thrust is towards having clarity of the rules, strengthening customs ability 
to act and achieving co-ordination and synergies with many other EU policy areas. 

The  Commission  invites  the  European  Parliament  and  the  Council  to  endorse  the  political 
direction and the specific actions suggested in the Communication. 

14