REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the Union Customs Code and on the exercise of the power to adopt delegated acts pursuant to Article 284 thereunder
Date: 2018-01-22
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: EU customs procedure, application of EU law, customs cooperation, customs harmonisation, customs regulations, customs union, delegated legislation, exchange of information, information system, powers of the institutions (EU)

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 22.1.2018  COM(2018) 39 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the Union Customs Code and on the exercise of the power to adopt delegated acts pursuant to Article 284 thereunder  
 
 
1.  INTRODUCTION 

On  9  October  2013,  the  European  Union  (EU)  adopted  the  Union  Customs  Code  (“UCC”). 
Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the 
Union Customs Code1 entered into force on 30 October 2013 although most of its substantive 
provisions took effect from 1 May 2016.  

The  UCC  defines  a  legal  framework  for  customs  rules  and  procedures  in  the  EU  customs 
territory that is adapted to modern trade realities, such as the global integration of production 
and delivery systems, e-commerce and modern communication tools.  Its goal is to facilitate 
the  flow  of  goods  transiting  or  moving  in  and  out  of  the  Union,  so  as  to  enhance  the 
competitiveness  of  European  businesses,  while  better  protecting  the  financial  and  economic 
interests of the Union and the Member States and the safety and security of EU consumers. To 
meet these objectives, the UCC aims in particular to complete the progression of customs to a 
paperless,  integrated  and  fully  electronic  environment.  The  UCC  establishes  common  rules 
and  data  requirements  for  customs  pre-arrival  and  pre-departure  declarations,  notifications, 
applications  and  decisions.  This  involves  the  upgrade  or  creation  of  seventeen  electronic 
systems.  

While  the  legislative  provisions  of  the  UCC  are  now  in  force,  the  seventeen  electronic 
systems are being implemented on a gradual basis and therefore the UCC also provides for a 
transitional  period,  up  to  the  end  of  2020,  during  which  existing  paper-based  or  electronic 
systems  can  continue  to  be  used  for  those  customs  matters  for  which  the  new  electronic 
systems are not yet available. A transitional period also applies to authorisations (for example 
for  treatment  as  Authorised  Economic  Operators  or  to  use  customs  "special  procedures") 
issued  under  the  previous  customs  framework  legislation,  the  Community  Customs  Code, 
which can continue to apply until April 2019 at the latest. 

Notwithstanding  the  fact  that  the  UCC  is  still  in  this  transitional  phase,  the  European 
Commission  has  prepared  the  present  report  so  as  to  take  stock  of  the  state  of  play  of 
implementation of the legislative provisions and delivery of the electronic systems. The report 
responds to a request from the European Parliament in a Resolution of 19 January 20172 and 
to  the  invitation  of  the  Council  in  its  Conclusions  on  the  Follow  up  of  the  Union  Customs 
Code of 29 September 2016.3 

In addition, the Commission herewith reports to the European Parliament and the Council, as 
required,  on  its  use  of  the  delegation  of  power  to  adopt  delegated  acts  conferred  by  Article 
284 of the UCC. 

The Commission has prepared this report on the basis of discussions with EU Member States 
and  business  on  issues  to  do  with  implementation  of  the  UCC  and  on  the  basis  of  its  own 
analysis.  

2.  BACKGROUND 

1 OJ L 269, 10.10.2013, p.1. A corrigendum (OJ L 287, 29.10.2013, p.90) corrected a typographical error in the 
10 October text where the implementation date was given as 1 June 2016.  The text voted upon by the European 
Parliament and Council provided for an implementation date of 1 May 2016  
2  European  Parliament  resolution  of  19  January  2017  on  tackling  the  challenges  of  the  Union  Customs  Code 
implementation and Commission response - 2016/3024 (RSP) 
3 Council Conclusions on the Follow up of the Union Customs Code (OJ C 357, 29.09.2016, p.2) 

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a.  Legal structure  

The  UCC  superseded  the  1992  Community  Customs  Code  (“CCC”),  which  was  the  first 
attempt  to  consolidate  the  EU’s  customs  regulations.  Although  a  major  achievement  and  a 
facilitation for businesses at that time, the procedures and practices under the CCC relied on 
the use  of paper documentation which was not  suited to  a more  modern electronic business 
environment. In addition, the increasing responsibilities of customs in matters going beyond 
collection of duties (such as addressing security and safety challenges, illegal cash movements 
and  counterfeit  goods)  required  legislative  provisions  for  a  more  efficient  organisation  of 
customs controls.  

This  led  the  Commission  to  carry  out  a  comprehensive  impact  assessment  to  determine  the 
right approach to meet the customs challenges ahead4 and, on the basis of the results of that 
impact  assessment,  the  Commission  presented  a  proposal  for  an  EU  Modernised  Customs 
Code  (“MCC”)  and  a  Decision  on  electronic  customs  in  late  2005.  However,  for  various 
reasons but in particular because the Lisbon Treaty5 introduced a new legal architecture with 
new rules and procedures concerning the adoption of implementing provisions accompanying 
main  regulations,  the  Commission  was  obliged  to  “recast”  the  MCC  before  its  planned 
application date.  

On 20 February 2012, the Commission therefore proposed the UCC as a recast of the MCC, 
including  articles  empowering  the  Commission  to  adopt  detailed  supplementing  and 
implementing  rules,  which  aligned  EU  customs  legislation  with  the  requirements  of  the 
Lisbon Treaty.  

The UCC entered into force on 30 October 2013 but only the Commission's empowerments 
took effect on that date while the other provisions of the Code became applicable from 1 May 
2016. The  Commission made use of its empowerments in the intervening period to adopt the 
following legal acts, which together with the Code, constitute the UCC legal package:  

i. 

ii. 

iii. 

iv. 

The UCC "Delegated Act",6 which supplements certain non-essential elements of 
the Code; 
The  UCC  "Implementing  Act",7  which  sets  out  uniform  procedural  rules  for  the 
implementation of the UCC;  
The  UCC  "Transitional  Delegated  Act",8  providing  for  alternative  means  for  the 
exchange  and  storage  of  customs  information  for  as  long  as  the  UCC  electronic 
systems are not operational; and 
The UCC "Work Programme"9, that took the form of a Commission Implementing 
Decision, setting out the planning of the IT systems. 

4 SEC(2005)1543 
5 OJ C 306, 17.12.2007, p. 1–271 
6  Commission  Delegated  Regulation  (EU)  2015/2446  of  28  July  2015  supplementing  Regulation  (EU)  No 
952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions 
of the Union Customs Code (OJ L 343, 29.12.2015, p. 1) 
7 Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for 
implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council 
laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558) 
8  Commission  Delegated  Regulation  (EU)  2016/341  of  17  December  2015  supplementing  Regulation  (EU) 
952/2013 of the European Parliament and of the Council as regards transitional rules for certain provisions of the 
Union  Customs  Code  where  the  relevant  electronic  systems  are  not  yet  operational  and  amending  Delegated 
Regulation (EU) 2015/2446 (OJ L 69, 15.3.2016, p.1) 
9  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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In addition, as a result of an ongoing dialogue with trade representatives, European Parliament 
and  Member  States  that  led  to  the  identification  of  some  technical  issues,  the  Commission 
together with the European Parliament and the Council acted quickly to address those issues 
by adopting the following amendments to the legislative package even before the new rules 
entered into application:  

v. 

Two modifications to the UCC Delegated Act:  

o  The Transitional Delegated Act amended the Delegated Act to ensure a smooth 
transition from the CCC to the UCC on 1 May 2016.10 It transpired that some 
provisions of the Delegated Act cannot be applied until the IT systems are fully 
operational  and  therefore  some  transitional  measures  were  needed  not  just  in 
the UCC but also in the Delegated Act, to allow for the continued use of paper-
based or alternative systems until the IT systems are operational.  

o  Corrections were  made  to two provisions11 of the UCC Delegated Act  which 
accidentally  omitted  a  facilitation  provision  of  the  CCC.  The  correction 
ensures  the  continuation  of  a  presumption  of  a  declaration  for  temporary 
admission,  or  re-export,  in  the  case  of  tourist  traffic  and  of  certain  specified 
goods such as pallets, containers and vessels and airplanes passing through the 
customs  territory.  For  planes  crossing  the  EU  border  in  particular,  the 
obligation to provide oral or written declarations would have seriously affected 
frontier and tourist traffic. 

vi.  A  technical  correction  to  Annex  12  of  the  UCC  Transitional  Delegated  Act12, 

which sets out the forms to be used for applications and authorisations.  

Finally, the Commission in April 2016 used the power conferred by Article 50 UCC to adopt 
a  Commission  Implementing  Decision13  laying  down  detailed  rules  on  the  establishment  of 
common  risk  criteria  and  standards  for  security  and  safety  risk  analysis  for  the  harmonised 
application of certain customs controls pursuant to the Union Customs Code. 

b.  Objectives and legislative content 

The UCC aims, in line with modern-day needs, to offer greater legal certainty and uniformity 
for  the  benefit  of  both  businesses  and  customs  administrations,  to  simplify  rules  and 
procedures, to facilitate more efficient customs transactions and to achieve full automation of 
all  customs  procedures  and  processes.  At  the  same  time,  the  UCC  is  intended  to  better 
safeguard  the  financial  and  economic  interests  of  the  Union  and  of  the  Member  States.  In 
addition, it aims to take into account the evolution of policies and legislation in other fields 
that  might  impact  customs  legislation  such  as  regarding  the  safety  and  security  of  imports. 
Some  of  the  most  important  legislative  changes  under  the  UCC  in  line  with  the  above 
objectives are as follows:  

(OJ  L  99  15.4.2016  p.  6),  replacing  the  earlier  version  of  the  Work  Programme  set  out  in  Commission 
Implementing Decision (EU) 2014/255 of 29 April 2014 (OJ L 134 7.5.2014, p. 46-53)  
10 The Transitional Delegated Act amended Articles 2, 3, 104, 106, 112, 113, 128, 138, 141, 144, 146, 181 and 
184 of the UCC Delegated Act and added Articles 122a, 124, 124a, 126, 126a and 129a to 129d 
11  Commission  Delegated  Regulation  (EU)  2016/651  of  5  April  2016  (OJ  L  111,  27.4.2016,  p.1)  corrected 
Articles 136 and 141 of the UCC Delegated Act  
12  Commission Delegated Regulation (EU) 2016/698 of 8 April 2016 correcting the Transitional Delegated Act  
13  Commission  Implementing  Decision  C  2016/2422  of  27  April  2016  on  the  establishment  of  common  risk 
criteria for security and safety risk analysis   

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  No  limitations  on  the  right  of  a  customs  representative  to  provide  services  in  a 
Member  State  other  than  his  place  of  establishment,  so  as  to  ensure  a  level  playing 
field for trade within the Customs Union. 

  Harmonised rules on decision-making by the Member States, including on the issuing 
of  authorisations  by  customs.  This  is  intended  to  benefit  trade  by  increasing 
predictability,  facilitating  application  procedures  and  introducing  improved  and 
stronger  rules  on  the  right  of  a  trader  to  be  heard  prior  to  adoption  of  a 
disadvantageous decision.  

  New  simplifications  of  customs  clearance  processes.  Authorised  Economic  Operator 
(AEO) criteria may  be  used  to  determine whether non-AEO economic operators  can 
benefit  from  some  simplifications,  while  other  simplifications  are  available  only  to 
AEOs: 

  Simplifications where some or all AEO criteria apply include the following: i) 
Customs  representative  wishing  to  provide  services  in  a  Member  State  other 
than  the  one  where  he  or  she  is  established,  ii) Reductions in  comprehensive 
guarantees in respect of customs duties due, iii) Approval of a place other than 
the  competent  customs  office  for  presentation  of  goods;  iv)  Authorisation  to 
lodge customs declarations in the form of "Entry into Declarant's Records"; v) 
Authorisation  for  simplifications  related  to  transit,  vi)  Authorisation  for  the 
operation  of  a  temporary  storage  facility,  vii)  Authorisations  to  use  special 
procedures  (customs  warehousing,  end-use,  temporary  admission  and  inward 
and outward processing).  

  Benefits  available  only  to  AEOs  (in  compensation  for  the  fact  that  traders 
wishing to obtain AEO status now have to fulfil additional criteria): i)  Total or 
partial  reduction  in  the  guarantee  to  be  provided  in  order  to  benefit  from 
deferred  payment  of  duties;  ii)  Centralised  clearance,  allowing  operators  to 
lodge  customs  declarations  and  pay  duties  centrally  from  their  place  of 
establishment, rather than in  other Member States  where  goods are presented 
to  customs;  iii)  Waiver  of  the  obligation  for  the  goods  to  be  presented  under 
the Entry into Declarants' records simplification; iv) "Self-assessment", which 
enables  reliable  economic  operators  to  calculate  the  amount  of  duty  payable 
and carry out certain controls on behalf of Customs; and v) permission to move 
goods  to  another  Member  State  while  they  are  still  under  temporary  storage 
(i.e. before they are assigned to a customs procedure).  

  Standardisation  of  rules  applicable  to  binding  customs  decisions  on  tariffs  and  on 
origin: i) the validity of a Binding Tariff Information (BTI) decision is reduced from 
six to three years in line with the limit applicable to Binding Origin Information; and 
ii)  the  BTI  decision  is  now  binding  on  the  holder,  meaning  that  he  must  inform 
customs authorities that he holds a BTI decision for the declared goods so as to avoid 
BTI shopping. 

 

Introduction  of  obligatory  guarantees  for  all  customs  procedures,  so  as  to  safeguard 
EU own resources and financial interests, coupled with the availability of reductions 
for very reliable economic operators and waivers for AEOs. 

  New  safety  and  security  rules  requiring  multiple  filing  at  entry  i.e.  not  just  by  the 
carrier but also by the freight forwarder and even by the consignee, thus aligning the 

4 

 
 
 
arrangements  with  international  standards  (e.g.  WCO  Framework  of  Standards  to 
Secure and Facilitate global trade).  

  Relaxation  of  the  rules  on  temporary  storage,  including  the  extension  of  the  storage 
period to 90 days (as opposed to the previous 20 or 45 days, depending on whether the 
goods were carried by sea), and enabling goods to be moved under temporary storage 
between facilities without transit procedures. 

  Merger of the customs "inward processing", "processing under customs control" and 
destruction  procedures.  In  addition,  the  holder  of  an  authorisation  to  use  a  customs 
procedure  now  has  more  time  to  decide  whether  to  re-export  the  final  goods,  have 
them destroyed or enter them into free circulation.  

c.  Electronic systems 

Under  the  UCC,  the  exchange  of  information  between  economic  operators  and  customs 
authorities  as  well  as  between  customs  authorities  must,  by  2020,  be  based  entirely  on 
electronic data-processing techniques. This is perceived as a major step forward to facilitate 
legitimate  trade,  reduce  administrative  burdens  and  ensure  that  harmonised  requirements 
apply  throughout  the  EU.  To  achieve  this  goal,  seventeen  electronic  systems  are  being 
upgraded or developed in accordance with the timetable set out in the UCC Work Programme. 
These systems can be divided into two categories: i) fourteen  trans-European systems to be 
developed or upgraded by the Commission in cooperation with the Member States, including 
central  systems  and  systems  that  have  a  national  component  to  be  implemented  by  the 
Member States; and ii) three national systems that have to be developed or upgraded by the 
Member States.  

The  fourteen  trans-European  systems  (including  those  with  national  components)  are  as 
follows: 

1.  Registered  Exporter  System  -  REX  (new):  aims  to  make  available  up-to-date 
information on both registered exporters established in GSP countries (countries that 
benefit  from  the  EU's  Generalised  Scheme  of  Preferences  that  provides  preferential 
access to  the EU  market)  and European  Union operators exporting to  GSP countries 
and certain other countries;  

2.  Binding tariff information – BTI (upgrade):  aims to align with the UCC the database 
containing all binding tariff information that has been issued by customs authorities of 
Member States; 

3.  Customs  decisions  system  (CDS)  (new):  aims  to  harmonise  across  the  Union  the 
processes  for  customs  decisions  related  to  the  application  of  customs  legislation,  by 
facilitating consultations during the decision-taking period and the management of the 
authorisations process;  

4.  Uniform User Management & Digital Signature – UUM&DS or "EU Trader Portal" 
(new): aims to provide direct and EU-harmonised trader access to different electronic 
customs systems as defined in the UCC;   

5.  Authorised  Economic  Operators  –  AEO  (upgrade):  aims  to  improve  the  business 
processes related to AEO applications and authorisations taking account of the UCC 
changes; 

6.  Economic Operator Registration and Identification System – EORI (upgrade): aims  at 
providing  a  minor  upgrade  to  the  existing  system  that  enables  the  registration  and 

5 

 
 
identification of economic operators of the Union and third country persons active in 
customs matters in the Union; 

7.  Common customs tariff and surveillance – Surveillance (upgrade): aims to upgrade, so 
as to align with UCC requirements, the existing database that records and centralises 
all  EU  trade  data  (imports  and  exports)  provided  on  a  daily  basis  by  the  national 
customs authorities; 

8.  Proof of Union Status - PoUS (new): will store, manage and retrieve all declarations 

that traders provide to prove the Union status of their goods; 

9.  New  Computerised  Transit  System  –  NCTS  (upgrade):  aligns  the  existing  transit 
system to the new UCC requirements such as the registration of "en route" events, the 
alignment  of  information  exchanges  to  UCC  data  requirements  and  the  upgrade  and 
development of interfaces with other systems; 

10. Automated Export System – AES (upgrade of both the existing trans-European system 
and  of  the  existing  National  Export  Systems):  aims  to  implement  the  UCC 
requirements for export and exit of goods; 

11. Standardised Exchange of Information for Special Procedures – INF (new): develops a 
new  system  to  support  and  streamline  the  processes  of  data  management  and  the 
electronic handling of data in the domain of Special Procedures; 

12. Centralised  Clearance  for  Import    -  CCI  (new):  aims  to  coordinate  between  relevant 
customs offices the processing of customs declarations and the authorisation to release 
goods  so  that  economic  operators  can  centralise  their  dealings  with  customs 
authorities; 

13. Guarantee  Management  –  GUM  (new):  aims  to  allow  a  real  time  allocation  and 
management  across  the  EU  of  comprehensive  customs  guarantees  that  traders  lodge 
where there are risks that duties might not be paid;  

14. Import Control System – ICS (upgrade): aims  to strengthen the safety and security of 
the supply chain by means of improving data quality, data filing, data availability and 
data  sharing  in  regard  to  Entry  Summary  Declarations  and  related  risk  and  control 
information. 

The three systems that Member States have to develop, or upgrade, are as follows: 

1.  Harmonisation and facilitation of special procedures – SP: national systems will have 
to implement all UCC changes required for customs warehousing, end-use, temporary 
admission and inward and outward processing; 

2.  Notification  of  Arrival,  Presentation  Notification  and  Temporary  Storage  -  NA,  PN, 
TS: defines the automation of processes at national level in respect of Notifications of 
Arrival of means of transport,  Presentation  of goods and declarations for Temporary 
Storage,  as  described  in  the  UCC,  and  supports  harmonisation  across  the  Member 
States as regards the data exchange between trade and customs;  

3.  National  Import  Systems  –  NIS:  aims  at  implementing  all  process  and  data 

requirements deriving from the UCC which relate to imports. 

3.  REVIEW 

a.  State of implementation of the UCC legislative package 

6 

 
 
 
The UCC package was implemented on time on 1 May 2016. The Commission has not so far 
identified any major problems in its application, although it is clear that both the benefits and 
the impact of the UCC will only be fully evident when all the related IT  systems have been 
deployed.  

Since  the  UCC's  entry  into  force,  the  Commission  has  continued  the  process  of  regular 
meetings  with  Member  States  and  trade  representatives  in  order  to  identify  and  address 
problems  with  the  legislation,  assist  in  its  interpretation  and  explore  the  scope  for  further 
simplification of processes.  This consultation process is in line with the commitments made 
by  the  Commission  in  its  Communication  on  Developing  the  EU  Customs  Union  and  its 
Governance.14 The Commission has paid particularly close attention at all times to the need 
for realistic timelines and to the costs and general impact of the changes on customs and trade.  

In addition, Member States and trade representatives have collaborated with the Commission 
on several guidance documents that address the practical application of the new rules. 

The Commission has set up a number of project groups15 under Customs 2020, involving both 
Member States and trade representatives, to look at some concrete business cases:  

  A project group on Simplifications, to develop the benefits of Self-assessment, Entry 

in the Declarant's Records and Centralised Clearance.  

  A project group on low-value imports, to analyse the most appropriate way to ensure a 
level playing field between postal operators and express couriers, given the increase in 
Internet sales and the consequent obligation on customs to ensure appropriate controls 
and protect citizens and EU financial interests without hindering legitimate trade. 

  A  project  group  on  transit,  to  work  on  the  use  of  an  electronic  transport  document 

(ETD) as a transit declaration for air transport or maritime transport.  

  A project group on guarantees, to explore how the conditions to benefit from a total or 
partial  reduction  of  the  level  of  comprehensive  guarantee  could  better  respond  to 
economic reality.  

Furthermore,  pilot  testing  in  conjunction  with  trade  and  Member  States  is  ongoing,  as 
provided for in the UCC, to test new methods and find better ways to address challenges such 
as  those  posed  by  increased  internet  sales,  lack  of  availability  of  data  and  the  need  for 
systems-based approaches.  

This process of regular dialogue with stakeholders has led to some further amendments and 
additions to the UCC legal package since 1 May 2016, as follows:    

i.  An  amendment  to  Article  136  UCC  concerning  goods  that  have  temporarily  left 
the customs territory of the Union by sea or air. This amendment16 was necessary 
to ensure proper customs supervision in the case of certain goods which enter the 

14 COM/2016/0813 final 
15 
the 
See 
http://ec.europa.eu/transparency/regexpert/index.cfm?do=search.result&page=1   
16 Regulation (EU) 2016/2339 of the European Parliament and of the Council of 14 December 2016 amending 
Regulation (EU) No 952/2013 laying down the Union Customs Code, as regards goods that have temporarily left 
the customs territory of the Union by sea or air (OJ L 354, 23.12.2016, p. 32) 

Commission's 

register 

groups 

expert 

of 

at  

7 

 
                                                            
Union through one port but continue their journey on a container ship to a second 
port  in  the  Union  and  are  only  unloaded  in  that  second  port.  As  a  result  of  the 
amendment, the goods must also be presented to customs in that second port. 

ii.  An  amendment  to  the  the  UCC  Implementing  Act17,  so  as  to  better  adapt  the 
legislation to the needs of authorities and trade and to better guarantee the effective 
and  uniform  application  of  rules.  The  most  substantial  amendments,  which  were 
introduced at the request of trade representatives, can be summarised as follows:  

o  The rules governing a long-term supplier's declaration have been clarified and 
made  simpler. Trade representatives  particularly welcomed the reintroduction 
of  the  possibility  for  traders  to  issue  at  any  moment  in  the  year  a  single 
declaration covering the full calendar year;  

o  More time has been given to exporters to obtain a Registered Exporter (REX) 
number (allowing exporters to self-certify the origin of goods) for the purposes 
of the EU-Canada Trade Agreement (CETA); and  

o  The rules for designating the customs office of exit in cases of export followed 

by transit of excise goods have been improved. 

iii.  Adoption  of  an  Implementing  Act18  on  technical  arrangements  for  developing, 
maintaining and employing electronic systems for the exchange of information and 
for the storage of such information under the Union Customs Code. It lays down 
the  rules  governing  the  Customs  Decisions  System  and  the  Uniform  User 
Management and Digital Signature system (see section b below).  

iv. 

It  is  likely  that  the  Delegated  Act,  and  the  Implementing  Act,  will  need  to  be 
amended again in 2018 to deal inter alia with the following points:  

o  A new definition of exporter in Article 1(19) of the Delegated Act whereby the 
exporter will still be required to be established in the EU but the condition that 
the exporter must hold the sale contract will be softened. Trade representatives 
argue  that  the  current  definition  does  not  adequately  reflect  existing  business 
models, such as where the seller is established outside the EU.  

o  An  amendment  to  Articles  114  and  134  UCC  Delegated  Act  to  introduce 
flexibilities  in  the  customs  formalities  applicable  for  transactions  between  a 
Special Fiscal Territory and its mainland (i.e. for transactions within a single 
Member State).  

o  Extension beyond a day in the deadline in Article 115 UCC Delegated Act to 
declare  goods  stored  in  other  than  a  temporary  storage  facility.  The 
modification  would  be  designed  to  ensure  that  the  time-period  is  more 
manageable  for  both  trade  and  customs  while  still  being  kept  short  to  avoid 
abuses.  

17 Commission Implementing Regulation (EU) 2017/989 of 8 June 2017 correcting and amending Implementing 
Regulation (EU) 2015/2447 laying down detailed rules for implementing certain provisions of Regulation (EU) 
No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 149, 
13.6.2017, p. 19–56) 
18 Commission Implementing Regulation (EU) 2017/2089 of 14 November 2017 on technical arrangements for 
developing, maintaining and employing electronic systems for the exchange of information and for the storage of 
such information under the Union Customs Code 

8 

 
  
 
 
 
 
                                                            
o  Amendment  of  an  existing  provision  which  requires  a  printout  of  the  fishing 
logbook, including confidential commercial information, to be provided to the 
customs authorities of third countries so that those authorities can certify that 
sea-fish products transhipped and transported through their country or territory 
have not been manipulated. The fish industry has alerted the Commission to a 
problem of being required to disclose confidential commercial information on 
where fish have been caught so the amendment would ensure that there would 
be no sharing of confidential information belonging to EU vessels. 

o  Amendment to the Delegated Act to restore a provision that existed under the 
CCC legislation. Trade representatives have noted that the UCC package does 
not  contain  any  provision  specifically  allowing  a  holder  of  authorisations  for 
end  use  to  store  in  a  single  tank  energy  products  classified  under  different 
subheadings.  For  reasons  related  to  the  technical  characteristics  of  these 
products,  that  restriction  makes  it  impossible  in  practice  to  use  such  end  use 
authorisations.  

o  Amendment to the regulatory framework applicable to cars rented outside the 
EU by EU residents. Currently, if the cars are non-EU plated, they are subject 
to import duty when they enter the EU customs territory (except where an EU 
resident  uses  a  rented  car  to  return  to  his  place  of  residence).  This  has  been 
considered  too  restrictive  in  the  case  of  EU  residents  renting  cars  for  short 
periods so the Delegated Act may be amended to rectify this issue. 

o  Amendment to the rules of origin so that a preferential tariff treatment can be 
granted  to  processed  products  that  have  been  obtained  from  imported  goods 
that  themselves  qualified  for  preferential  tariff  treatment  under  the  inward 
processing procedure. This amendment would offer to the economic operators 
concerned  a  tariff  treatment  equivalent  to  the  one  they  enjoyed,  under  the 
customs procedure known as processing under customs control, when the CCC 
was in force. 

o  Some  technical  amendments  to  better  adapt  to  the  situation  of  exporters  the 

rules on registration for the REX electronic system. 

Apart  from  the  above  more  general  amendments  to  the  UCC  package,  the  Commission  has 
also, as it did under the CCC, used its powers under the UCC to adopt implementing acts on 
several  occasions  for  specific  or  technical  purposes,  such  as  for  the  tariff  classification  of 
goods and for temporary derogations from the rules on preferential origin.  

b.  State of implementation of the UCC Work Programme 

The  first  deadline  for  the  operation  of  some  of  the  seventeen  IT  systems  listed  in  the  UCC 
Work Programme was 2017 and this deadline has been met:  

  On 1 January 2017, the Commission launched the Registered Exporter (REX) system. 
This new database contains the data on registered exporters in beneficiary countries of 
the Generalised System of Preferences of the EU and on some registered operators in 
the EU, including in the context of the free trade agreement with Canada. This allows 
an economic operator to check whether a supplier is registered to be allowed to make 
out statements on origin and will also allow EU customs authorities to validate REX 
numbers provided in customs declarations against the central database. About 20,000 
exporters  have  been  registered  in  the  EU  and  about  11,000  exporters  have  been 

9 

 
 
registered in the GSP beneficiary countries already applying the system. The feedback 
received from economic operators, from EU customs authorities and from competent 
authorities in the GSP beneficiary countries has been very positive with no complaints 
so far. 

 

In  October  2017,  the  Commission  launched  the  Customs  Decision  system  and  the 
Uniform  User  Management  &  Digital  Signature  system  (UUM&DS)  together.  The 
Customs  Decisions  System  represents  a  major  step  in  the  harmonisation  of  the  way 
customs  authorisations  are  managed  across  the  28  Member  States.  The  system  has 
common components (EU trader portal, central customs decisions management system 
and customer reference services) and national components (national trader portal and 
national  customs  decisions  management  system).  It  allows  the  processing  of  twenty 
two  customs  authorisations  such  as  those  for  simplified  declarations,  centralised 
clearance,  inward  and  outward  processing,  comprehensive  guarantees,  deferred 
payment,  transit  and  several  more.  The  Economic  Operator  can  file  the  applications 
for authorisations via the UUM&DS which allows him access to the Decision System.  

  The  first  phase  of  the  Binding  tariff  information  (BTI)  system  was  completed  in 

October 2017, which was the target date for the completion of that phase.  

Most of the other electronic systems are also on track for completion by the dates set out in 
the  Work  Programme.  In  effect,  it  is  expected  that  close  to  eighty  per  cent  of  the 
Commission's work on the trans-European systems will be completed by 2020.  

However, it has also become clear that not all the systems can be fully completed by the 2020 
deadline. That deadline was always an ambitious one, given the complexity of the task and the 
costs  of  introducing  new  IT  systems  across  the  EU.  When  setting  that  deadline,  it  was 
anticipated  that  the  rules  supplementing  and  implementing  the  UCC  (the  Delegated  Act, 
Implementing  Act  and  Transitional  Delegated  Act)  would  be  adopted  very  soon  after  the 
adoption  of  the  UCC  in  2013,  so  that  their  provisions  could  be  taken  into  account  in 
developing  the  IT  systems.  However,  discussions  on  the  supplementing  and  implementing 
provisions took much longer than expected and the acts were only adopted in their final form 
in late 2015/early 2016. This led in turn to a delay in producing the functional specifications 
for the electronic systems dealing with declarations and notifications, which are based on the 
data  requirements  laid  down  in  Annexes  B  of  the  UCC  Delegated  and  Implementing  Acts. 
The  complexity  of  the  systems  has  only  become  fully  apparent  on  the  completion  of  these 
technical specifications.  

In  addition,  the  harmonisation  of  the  data  requirements  (i.e.  the  data  that  the  customs 
authorities of the Member States require from  economic operators)  has proved to  be one of 
the main challenges for the development of the IT systems. Data harmonisation is crucial for 
the interoperability of the different electronic systems and for a harmonised application of the 
legal rules. It is also crucial so as to ensure alignment with international data models such as 
that  of  the  World  Customs  Organisation  and  thus  ensure  linkages  with  third  countries'  IT 
systems  and  facilitate  trade.  However,  this  work  involves  a  much  heavier  than  expected 
investment  in  terms  of  time  and  in  financial  terms  in  fully  reprogramming  some  of  the 
existing electronic systems. 

Another challenge is that, as the electronic systems are closely interlinked with each other, it 
is  important  to  implement  them  in  the  right  order  (sequencing)  so  as  to  ensure  that 
interdependencies  are  respected  and  that  the  changes  for  administrations  and  trade  are 

10 

 
introduced in a structured and coherent manner.  

Particular  issues  arise  in  relation  to  the  upgrade  of  the  Import  Control  System  (ICS).  This 
system was designed in response to concerns about security following the 9/11 attacks and in 
the  framework  of  the  standards  for  international  trade  advocated  by  the  World  Customs 
Organisation. It requires carriers to send a certain number of data elements electronically to 
the EU customs office of first entry before merchandise enters the territory and in most cases, 
even  before  the  merchandise  leaves  the  country  of  export.  The  aim  under  the  UCC  is  to 
improve the existing ICS. "ICS2" would, for example, introduce a central European repository 
so as enable the collection of high quality and real time advance cargo information; provide 
for  multiple  filing  (i.e.  so  that  not  only  a  carrier  but  also  an  importer,  consignee,  or  other 
relevant  persons  could provide  the necessary  data  on  the  goods  entering  the  custom  union); 
provide  for  a  harmonised  trader  interface  to  allow  economic  operators  to  submit  advance 
cargo information in a standardised and harmonised way; and provide tools to help customs 
authorities screen for risk management purposes the high volumes of information stored in the 
repository. However, it has become clear that the work involved in the ICS is much greater 
than expected, in particular because of the high security requirements for data in the central 
repository, high operational costs, the above-mentioned need to harmonise data requirements 
and the need for more shared functionalities at EU level so as to reduce the requirement for 
parallel costly national investments.   

c.  Next steps 

The  Commission  will  continue  the  process  of  regular  discussion  with  Member  States  and 
business  to  ensure  that  the  UCC  facilitates  trade.  The  simplification  of  customs  legislation 
and  procedures  introduced  by  the  UCC  is  already  having  a  good  impact  and  it  has  largely 
been welcomed by economic operators. However, some argue that the UCC does not go far 
enough  in  facilitating  trade.  They  point  to  the  fact  that  AEO  status  is  now  compulsory  to 
benefit from certain simplifications and that this will disadvantage small companies that are 
not able to invest in acquiring AEO status, even though it was business which requested some 
special benefits for AEOs in return for the investment and effort that the economic operators 
involved invest in obtaining AEO authorisation. Many trade representatives also point out that 
it  will  take  too  long  for  the  benefits  of  the  UCC  to  fully  materialise  because  of  the  long 
transitional  periods  allowed  for  the  continued  co-existence  of  paper  based  systems  in  some 
Member States although others seek longer transitional periods for the completion of all the 
new  electronic  requirements.  Furthermore,  some  trade  representatives  point  to  continuing 
differences between Member States in interpretation of rules.  

The Commission will also continue to work in close consultation with stakeholders to identify 
errors and technical anomalies in the legislative package. The UCC legal acts are more than 
2,000 pages long and therefore it is inevitable that adaptations will continue to be necessary to 
the  legislative  package.  The  previous  CCC  and  its  corresponding  Implementing  Provisions 
required several amendments.  

On the side of customs authorities, a critical function is to protect revenues and ensure safety 
and security. Efforts must also continue, therefore, to ensure that the balance between controls 
and trade facilitation is right and that any problems in this regard are addressed quickly. This 
work  will  involve  continued  intensive  engagement  with  the  European  Parliament,  the 
European  Court  of  Auditors  and  services  within  the  Commission  responsible  for  protecting 
EU own resources and for combating fraud.  

As regards the UCC electronic systems, the Commission believes it is necessary to extend the 

11 

 
deadline  for  some  systems  in  order  to  ensure  a smooth  implementation  of  the  others  by  the 
2020  target  date.  Member  States  and  business  need  realistic  timetables  and  legal  certainty 
about  the  arrangements  for  the  exchange  and  storage  of  customs  information  and  need  on 
average two years to make arrangements for each electronic system. If some systems are not 
likely  to  be implemented  by  that  date,  this  must  be  clarified  by  2018  and  certainty  must  be 
provided about the legal rules that will apply in the absence of such systems.   

In consequence, the Commission proposes the following:  

i) It will carry out an interim evaluation of the UCC by end 2021, and a comprehensive fitness 
check once all the electronic systems have been implemented. The fitness check will enable 
the  Commission  to  decide  in  the  longer  term  whether  any  major  policy  changes  need  to  be 
made so that the UCC remains fit for purpose in a global trading environment and so that it 
continues to ensure a proper balance between trade facilitation and controls.  

ii)  Prior  to  the  fitness  check,  the  Commission  may  continue  to  present  proposals  for  any 
corrections  or  technical  amendments  to  the  UCC  legal  package  that  become  necessary  to 
ensure the continued smooth functioning of the legislative framework. 

iii) The Commission will consider tabling a legislative proposal in early 2018 for an extension 
to  the  deadline  for  the  continued  use  of  transitional  arrangements  in  respect  of  the  limited 
number of electronic systems that cannot be fully implemented by the deadline of 2020. This 
will be followed by a Commission Implementing Decision with a corresponding update to the 
Work Programme. At this time, the systems which look likely to require further work beyond 
2020 are as follows:  

 

 

the  upgrades  of  the  Import  Control  System  (ICS),  the  New  Computerised  Transit 
System (NCTS) and the Automated Export System (AES) plus the export component 
of the Special Procedures System; and  

the introduction of the Centralised Clearance for import (CCI), Proof of Union Status 
(PoUS) and Guarantee Management (GUM) Systems.  

The  Commission  has  consulted  Member  States  about  these  electronic  systems  that  require 
further work and has drawn up this tentative planning on the basis of the responses received 
from Member States. It has also consulted trade representatives at the regular meetings of the 
Trade Contact Group that gathers representatives from diverse trade associations. 

4.  EXERCISE OF THE POWER TO ADOPT DELEGATED ACTS 

Under Article 284 UCC, the Commission is empowered to adopt delegated acts in accordance 
with the procedure set out in Article 290 TFEU, in order to supplement or amend certain non-
essential elements of the UCC Regulation, for a period of five years starting on 30  October 
2013. Article 284 (2) requires the Commission to draw up a report to the European Parliament 
and  to  the  Council  in  respect  of  the  use  of  this  power  to  adopt  delegated  acts.  The 
Commission is required to prepare the report no later than nine months before the end of the 
five year period, namely by 30 January 2018. 

The UCC empowers the Commission to adopt delegated acts under the following provisions: 
Articles 2, 7, 10, 20, 24, 31, 36, 40, 62, 65, 75, 88, 99, 106, 115, 122, 126, 131, 142, 151, 156, 
160, 164, 168, 175, 180, 183, 186, 196, 206, 212, 216, 221, 224, 231, 235, 253, 265, and 279. 

12 

 
 
Until November 2017, the Commission exercised its power to adopt delegated acts four times 
(see section 2.a): 

a) 

b) 

c) 

d) 

To adopt the UCC Delegated Act19. The table in the Annex links the provisions in 
the UCC Delegated Act with the empowerments conferred on the Commission by 
the Code; 

To adopt the UCC Transitional Delegated Act20, on the basis of the empowerment 
in Article 279 of the Code;  

To correct Articles  136 and 141 of the  UCC Delegated Act21 on the basis  of the 
empowerment in Article 160 of the Code; and  

To correct Annex 12 of the UCC Transitional Delegated Act22, on the basis of the 
empowerement in Article 279 of the Code.  

When  preparing  the  delegated  acts  the  Commission  consulted  all  relevant  stakeholders,  in 
particular  Member  States'  experts  and  economic  operators  from  the  trade,  logistics  and 
business sector. Experts from the Member States and the business community discussed and 
supported the provisions included in the delegated acts.  

Throughout the procedural and decision-making process, the Commission ensured the timely 
and  appropriate  transmission  of  relevant  documents  to  the  European  Parliament  and  to  the 
Council. The  European Parliament and the Council did  not object to the adoption of any of 
those acts. 

In  order  to  ensure  that  the  EU  customs  legislation  is  constantly  adapted  to  the  technical 
requirements and technological progress of customs activity, the Commission is of the view 
that the power to adopt delegated acts conferred on it by the UCC should be extended for a 
further period of five years, in accordance with Article 284(2) of the UCC. 

5.  CONCLUSION 

With this report the Commission complies with i) the request of the European Parliament for a 
report  on  the  implementation  of  the  UCC  and  ii)  its  obligation  to  report  to  European 
Parliament  and  Council  on  its  use  of  delegated  powers  under  Article  284(2)  of  the  UCC 
Regulation.  

As  regards  the  implementation  of  the  UCC,  the  Commission  views  as  a  considerable 
achievement the fact that the UCC which introduced such major changes has not encountered 
any  major  legislative  problems  during  its  first  eighteen  months  of  implementation.  The 
process of regular consultation with Member States and trade has led to the speedy resolution 
of any technical errors that have become evident since the adoption of the Code in 2013. At 
the same time, it is clear that the impact of the UCC must be studied in a comprehensive way 
in the future so as to determine whether the UCC has met the goals for which it was designed 
or whether any policy adjustments are needed. The Commission proposes, therefore to: 

19 See footnote 6  
20 See footnote 8  
21 See footnote 11 
22 See footnote 12  

13 

 
 
                                                            
  carry  out  by  2021  an  interim    evaluation  of  the  UCC  legal  framework  and  the 

electronic systems implemented by that date 

  carry  out  a  more  comprehensive  fitness  check  once  all  the  electronic  systems  have 

been implemented;  

  continue  to  propose  corrections  or  technical  amendments  to  the  UCC  legal  package 
necessary to ensure the continued smooth functioning of the legislative framework;  
  consider tabling a legislative proposal in early 2018 for an amendment to the UCC, so 
as to extend to 2025 at the latest the period during which transitional arrangements can 
be  used  in  respect  of  the  customs  formalities  that  are  dealt  with  by  the  IT  systems 
which cannot be fully implemented by 2020; 

  update the UCC Work Programme via a Commission Implementing Decision.  

Concerning the use of the power to adopt delegated acts conferred by Article 284 (2) of the 
UCC, the Commission believes that it has exercised these powers actively and appropriately. 
At the same time, the Commission considers that this delegation of power should be extended 
in order to enable it to propose any further measures necessary to adapt customs legislation to 
technical and technological progress as well as to the dynamics of trade.   

The Commission invites the European Parliament and the Council to take note of this report. 

14 

 
 
 
Annex 

UCC empowering 

provisions 

UCC DA provisions adopted in accordance with the delegation of 
power 

Article 2 

Articles 114, 134, 188 

Article 7 (means for 
exchange and storage of 
information and common 
data requirements) 

Articles 2, 3, 4, 9, 19, 21, 38, 39, 40, 82, 85, 86, 87, 92, 93, 94, 95, 96, 
116, 124, 124a, 125, 126, 126a, 127, 129a, 129b, 130, 131, 132, 133, 
144, 154, 157, 160, 163, 164, 165, 175, 178, 181, 184, 185, 190, 196, 
238, 241, 246, 247, 249 

Article 10  

Article 20 

Articles 5, 6, 7 

Article 210 

Article 24 (Decisions 
relating to the 
applications of customs 
legislation) 

Article 31 (Revocation 
and amendment of 
favourable decisions) 

Article 36 (Management 
of decisions relating to 
binding information) 

Articles 5, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 22, 26, 27, 28, 
29, 30, 82, 92, 97, 121, 123, 156, 162, 171, 172, 173, 186, 192, 194, 205  

Delegation not yet used:  

The provision concerns 1) cases where a favourable decision addressed 
to  several  persons  may  be  revoked  both  in  respect  of  the  person  who 
fails  to  fulfil  an  obligation  imposed  under  that  decision  and  also  in 
respect of the other persons involved; 2) exceptional cases in which the 
customs  authorities  may  defer  the  date  on  which  revocation  or 
amendment takes effect.  

Delegation not yet used:  

The provision concerns 1) the specific cases referred to in Article 34(7) 
point (b) and article 34(8), where Binding Tariff Information (BTI) and 
Binding  Origin  Information  (BOI)  decisions  are  to  be  revoked;  2)  the 
cases  referred  to  in  Article  35,  where  decisions  relating  to  binding 
information  are  taken  concerning  other  factors  on  the  basis  of  which 
import or export duty and other measures in respect of trade in goods are 
applied. 

Article 40 

Article 62  

Articles 23, 24, 25 

Articles 31, 32, 33, 34, 35, 36 

Article 65 (Preferential 
origin) 

Articles 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 
58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70 

Article 75 

Article 71 

15 

 
 
Article 88 (Customs debt)  Articles 72, 73, 74, 75, 76, 77, 78, 79, 80, 168 

Article 99 

Article 106 

Article 115 

Article 122 

Article 126 

Articles 81, 82, 83, 84, 85, 86 

Article 88, 92 

Articles 89, 90, 91, 

Articles 98, 99, 100, 101, 102 

Article 103 

Article 131(Repayment 
and remission) 

Article 142 (designated 
places for the presentation 
of the goods brought into 
the EU customs territory) 

Article 151 (conditions 
and authorisation for 
temporary storage) 

Article 156 (Customs 
status of goods) 

Article 160 (Placing 
goods under a customs 
procedure) 

Articles 104, 105, 106, 107, 108, 109, 110, 111, 112, 113 

Article 115 

Articles 115, 116, 117, 118 

Articles 119, 120, 121, 122, 122a,128, 129, 129c, 129d,182 

Articles 135, 136, 137, 138, 139, 140, 141, 142, 143  

Article 164  

Article 155 

Article 168 (simplified 
declarations) 

Articles 145, 146, 147, 183 

Article 175  

Article 180 

Articles 148, 248 

Article 149 

Article 183 (EIDR) 

Article 150 

Article 186 

Article 196 

Article 206 

Article 212 (General 
provisions on special 
procedures) 

Articles 151, 152 

Article 153 

Articles 158, 159 

Articles 161, 163, 165, 166, 167, 170, 175, 176, 177, 178, 201, 202, 
203, 204, 206, 207, 218, 239, 240, 242, 243  

16 

 
Article 216  

Article 221 

Article 224 

Article 231 

Articles 174, 217, 218, 237 

Articles 179, 180 

Article 169 

Articles 187, 189 

Article 235 (Union 
transit) 

Articles 191, 193, 195, 197, 198, 199, 200 

Article 253 (Specific use) 

Articles 206, 208, 209, 210, 211, 212, 213, 214, 215, 216, 219, 220, 
221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 233, 234, 
235, 236 

Article 265 

Articles 244, 245 

17