P8_TA(2019)0385 Establishing the ‘Customs’ programme for cooperation in the field of customs ***I European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the ‘Customs’ programme for cooperation in the field of customs (COM(2018)0442 — C8-0261/2018 — 2018/0232(COD)) P8_TC1-COD(2018)0232 Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing the ‘Customs’ programme for cooperation in the field of customs
Date: 2019-04-16
Institutions: Committee on Budgetary Control, Committee on Budgets, Committee on the Internal Market and Consumer Protection, European Parliament
Subjects: EU programme, customs, customs cooperation, customs union, information system, third country




C_2021158EN.01015301.xml










30.4.2021   


EN


Official Journal of the European Union


C 158/153






P8_TA(2019)0385
Establishing the ‘Customs’ programme for cooperation in the field of customs ***I
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the ‘Customs’ programme for cooperation in the field of customs (COM(2018)0442 — C8-0261/2018 — 2018/0232(COD))
(Ordinary legislative procedure: first reading)
(2021/C 158/34)

The European Parliament,






—


having regard to the Commission proposal to Parliament and the Council (COM(2018)0442),










—


having regard to Article 294(2) and Articles 33, 114 and 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0261/2018),










—


having regard to Article 294(3) of the Treaty on the Functioning of the European Union,










—


having regard to the opinion of the European Economic and Social Committee of 17 October 2018 (1),










—


having regard to Rule 59 of its Rules of Procedure,










—


having regard to the report of the Committee on the Internal Market and Consumer Protection and the opinions of the Committee on Budgets and the Committee on Budgetary Control (A8-0464/2018),












1.


Adopts its position at first reading hereinafter set out (2);












2.


Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;












3.


Instructs its President to forward its position to the Council, the Commission and the national parliaments.






(1)  OJ C 62, 15.2.2019, p. 45.

(2)  This position replaces the amendments adopted on 15 January 2019 (Texts adopted, P8_TA(2019)0008).




P8_TC1-COD(2018)0232
Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing the ‘Customs’ programme for cooperation in the field of customs
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 33, 114 and 207 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
Acting in accordance with the ordinary legislative procedure (2),
Whereas:






(1)


The Customs 2020 programme set up under

, established by
 Regulation (EU) No 1294/2013 (3) and its predecessors have 
contributed
 significantly contributed to facilitating and enhancing

strengthening
 customs cooperation. Many of the 
customs
 activities in the customs area are of a cross-border nature, involving and affecting all Member States, and therefore they cannot be effectively and efficiently delivered by individual

implemented by each
 Member States. A

State alone. A Union-wide
 customs programme at Union level, implemented by the Commission, offers

provides
 Member States 
with
 a Union framework 
at Union level
 to develop those cooperation

such cooperative
 activities, which is more cost-efficient

cost-effective
 than if each Member State were to set up 
an
 individual cooperation frameworks on a

framework at
 bilateral or multilateral basis

level. The customs programme also plays an essential role in safeguarding the financial interests of the Union and of the Member States by ensuring the effective collection of customs duties and thus representing an important source of revenue for the Union and national budgets, also by focusing on IT capacity building and increased cooperation in the field of customs. Furthermore, harmonised and standardised controls are necessary in order to track illegal cross-border flows of goods and fight fraud
. It is therefore appropriate 
and in the interest of efficiency
 to ensure the continuity of Union

the Union's
 financing of activities in the field of customs cooperation by establishing a new programme in the same area

field
, the ‘Customs’ programme 
(‘the Programme’)
. [Am. 1]













(1a)






For 50 years, the customs union, implemented by national customs authorities, has been a cornerstone of the Union, one of the largest trading blocks in the world. The customs union is a significant example of successful Union integration, and is essential for the proper functioning of the single market for the benefit of both businesses and citizens. The European Parliament, in its resolution adopted on 14 March 2018, entitled ‘The next MFF: Preparing the Parliament’s position on the MFF post-2020’, expressed particular concern regarding customs fraud. A stronger and a more ambitious Union can only be achieved if it is provided with reinforced financial means, continuous support for existing policies, and increased resources. [Am. 2]











(2)


The customs union has evolved considerably over the last fifty

50
 years and customs administrations 
are
 now successfully perform

fulfilling
 a wide variety of

range of border
 tasks at borders. Acting

Working
 together, they work

strive
 to facilitate 
ethical and fair
 trade and reduce red tape

bureaucracy
, collect revenues

revenue
 for national and Union budgets, and 
help to
 protect the public

population
 against terrorist, health, 
and
 environmental and

threats, as well as
 other threats. In particular, with the introduction of an EU-wide

by introducing a
 common Risk Management Framework (4)
and

framework
 (5)

for
 customs control of movements of

risk management at Union level and by controlling
 large amounts of cash 
flows
 to combat money laundering and terrorist financing, 
the
 customs assume a front line position

authorities take a leading role
 in the fight against terrorism and organised crime 
and unfair competition.
 Given that broad

their extensive
 mandate, 
the
 customs is now effectively the lead authority

authorities are now in reality the main authorities
 for the control of goods at the Union’s external borders. Against that backdrop

In this context
, the Customs programme should not only cover customs cooperation but extend its

also provide
 support to the mission of

for the wider
 customs authorities at large, as set out

mission as provided for
 in Article 3 of Regulation (EU) No 952/2013, i.e. the supervision

namely the supervision
 of the Union's international trade, the implementation of the external aspects of the internal market, of the common 
commercial
 trade policy and of the other 
Union
 common Union policies having a bearing on

an influence on
 trade, as well as

and
 the security of the supply chain. The legal basis will

of this Regulation should
 therefore cover customs cooperation (Article 33 TFEU), 
the
 internal market (Article 114 TFEU) and commercial policy (Article 207 TFEU). [Am. 3]











(3)



In

The Programme should, as a general objective, assist the Member States and the Commission by
 providing a framework for actions that has as objective

aims
 to support the customs union and customs authorities, the Programme should

with the long-term objective that all customs administrations in the Union work together as closely as possible;
 contribute to protecting the financial and economic interests of the Union and its Member States; protecting

protect
 the Union from unfair and illegal trade

unlawful commercial practices,
 while supporting

encouraging
 legitimate business activity; ensuring

activities, guaranteeing
 the security and safety of the Union and its residents;
, thereby enhancing consumer protection
 and facilitating

facilitate
 legitimate trade, so that businesses and citizens can benefit from the full potential of the internal market and of global

world
 trade. [Am. 4]













(3a)






As it has become evident that some of the systems referred to in Article 278 of the Union Customs Code can only be partially deployed by 31 December 2020, which implies that non-electronic systems will continue in use beyond that date, and in the absence of legislative amendments that extend that deadline, companies and customs authorities will be unable to perform their duties and legal obligations as regards customs operations, one of the primary specific objectives of the Programme should be to assist the Member States and the Commission to set up such electronic systems. [Am. 5]













(3b)






Customs management and control is a dynamic policy area, facing new challenges generated by constantly evolving global business models and supply chains, as well as changing consumption patterns and digitalisation, such as e-commerce, including the internet of things, data analytics, artificial intelligence and block chain technology. The Programme should support customs management in such situations and enable the use of innovative solutions. Such challenges further underline the need to enforce cooperation between customs authorities and the need for a uniform interpretation and implementation of the customs legislation. When public finances are under pressure, the volume of world trade increases and fraud and smuggling are a growing concern; the Programme should contribute to tackling those challenges. [Am. 6]













(3c)






In order to ensure maximum efficiency and to avoid overlaps, the Commission should coordinate the implementation of the Programme with related Union programmes and funds. This includes in particular the Fiscalis Programme, the EU anti-fraud Programme and Single Market Programme, as well as with the Internal Security Fund and Integrated Border Management Fund, the Reform Support Programme, the Digital Europe Programme, the Connecting Europe Facility and the Council Decision on the system of Own Resources of the European Union, as well as the implementing regulations and measures. [Am. 7]













(3d)






With regard to the potential withdrawal of the United Kingdom from the Union, the financial envelope of the Programme does not take into account the costs resulting from the signing of the withdrawal agreement and the potential future relationship between the United Kingdom and the Union. The signing of that agreement, the disengagement of the United Kingdom from all existing customs systems and cooperation, and the lapsing of its legal obligations in this area, could lead to additional costs, which cannot be precisely estimated at the time of establishment of the Programme. The Commission should therefore consider reserving sufficient resources to prepare for those potential costs. However, those costs should not be covered by the envelope of the Programme, as the budget provided for in the Programme will only be sufficient to cover the costs which could realistically be foreseen at the time of establishment of the Programme. [Am. 8]











(4)


This Regulation lays down a financial envelope for the Programme, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (6), for the European Parliament and the Council during the annual budgetary procedure.










(5)


In order to support the process of accession and association by

of
 third countries, the Programme should be open to the participation of acceding and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy, if certain

all
 conditions are fulfilled

met
. It may also be open to other third countries, in accordance with

under
 the conditions laid down

provided for
 in specific agreements between the Union and those

the
 countries covering their

concerned on the
 participation to

of those countries in
 any Union programme
, if that participation is of interest to the Union and if it has a positive impact on the internal market without affecting consumer protection
. [Am. 9]











(6)




The Programme should be covered by
 Regulation (EU, Euratom) [2018/XXX]

2018/1046
 of the European Parliament and of the Council (7) (
hereinafter referred to as
 the ‘Financial Regulation’) applies to this Programme. It lays down

. The Financial Regulation provides for the
 rules on

for
 the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursement of external experts. [Am. 10]











(7)


The actions which applied under the Customs 2020 programme 
and
 have proven to be adequate and should therefore be maintained
, while others that have proven to be inadequate should be terminated
. In order to provide more

greater
 simplicity and flexibility in the execution of the Programme and thereby better deliver on its objectives, the actions should be defined only in terms of overall categories with a list of illustrative examples of concrete activities. Through cooperation and capacity building, the Customs programme

Programme
 should also promote and support the uptake and leverage of innovation to further improve the capabilities to deliver on the core priorities of customs. [Am. 11]











(8)


Regulation [2018/XXX] establishes, as part of the Integrated Border Management Fund, a Customs Control Equipment Instrument (8) (‘CCE Instrument’). In order to preserve the coherence and horizontal coordination of all cooperation actions relating to customs and customs control equipment, it is appropriate to implement all of them under one single legal act and set of rules, 
that act and those rules
 being this Regulation. Therefore, the CCE Instrument should only support the purchase, maintenance and upgrade of the eligible equipment while this Programme should support all other related actions, such as cooperation actions for the assessment of equipment needs or, where appropriate, training in relation to the equipment purchased. [Am. 12]











(9)


Exchanges of customs and related information are key for a proper functioning of customs and they extend well beyond the exchanges within the customs union. Adaptations or extensions of European electronic systems to third countries not associated to the Programme and international organisations could indeed have an interest for the Union or the Member States. Therefore, when duly justified by such an interest, adaptations of or extensions to European electronic systems for cooperation with third countries and international organisations should be eligible costs under the Programme.










(10)


Considering the importance of globalisation, the Programme should continue to provide 
for
 the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. Those external experts should mainly be representatives of governmental authorities, including from non-associated third countries, as well as 
academics and
 representatives of international organisations, economic operators or civil society. [Am. 13]











(11)


In line with the Commission's commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 19 October 2010 entitled ‘The EU Budget Review (9)’, resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives that are common to various funding instruments
, taking into account that the amount allocated to the Programme is calculated without taking into account that there could be unforeseen expenses
, excluding however double financing. Actions under the Programme should ensure coherence in the use of the Union's resources supporting the customs union and customs authorities. [Am. 14]













(11a)






The purchase of software that is needed to perform tight border controls should be eligible for funding under the Programme. Furthermore, the purchase of software that can be used in all Member States should be encouraged in order to facilitate exchange of data. [Am. 15]











(12)


Information Technology (IT) capacity building actions are set to attract the greatest

a greater
 part of the budget under the Programme. Specific provisions should describe, respectively, the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and the Member States should be clearly defined. 
In order to ensure coherence and coordination of IT capacity-building actions, the Programme should provide that the Commission develops and updates a Multiannual Strategic Customs Plan (‘MASP-C’), with the aim of creating an electronic environment which ensures consistency and interoperability of the customs systems in the Union. [Am. 16]











(13)


Decision No 70/2008/EC of the European Parliament and of the Council (10) requests the Commission to draw up a Multi-Annual Strategic Plan for Customs for creating a coherent and interoperable electronic customs environment for the Union. The development and operation of the electronic systems included in the Multi-Annual Strategic Plan are mainly funded by the Programme. In order to ensure coherence and coordination between the Programme and the Multi-Annual Strategic Plan, the relevant provisions of the Decision should be included in this Regulation. As all relevant provisions of Decision No 70/2008/EC are now taken over either by Regulation (EU) No 952/2013 or by this Regulation, Decision No 70/2008/EC should be repealed.










(14)



This Regulation

The Commission
 should be implemented by means of

adopt
 work programmes 
for the purposes of this Regulation
. In view of the mid- to long-term nature of the objectives pursued and building on experience gained over time, work programmes should be able to cover several years. The shift from annual to multiannual work programmes will reduce the administrative burden for both the Commission and Member States. [Am. 62]













(14a)






In line with the findings contained on the two special reports adopted recently by the European Court of Auditors in the field of customs, namely special report No 19/2017 of 5 December 2017 entitled ‘Import procedures: shortcomings in the legal framework and an ineffective implementation impact the financial interests of the EU’, and special report No 26/2018 of 10 October 2018 entitled ‘A series of delays in Customs IT systems: what went wrong?’, the actions undertaken within the ‘Customs’ programme for cooperation in the field of customs should aim at tackling the shortcomings signalled. [Am. 17]













(14b)






On 4 October 2018 the European Parliament adopted a resolution on the fight against customs fraud and the protection of the Union’s own resources. The conclusions contained in that resolution should be taken into account during the actions implemented in the framework of the Programme. [Am. 18]












(15)




In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred to the Commission. Those powers should be
exercised
in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (11). [Am. 63]











(16)


Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 (12), there is a need to evaluate this programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Instrument on the ground.










(17)


In order to respond appropriately to changes in policy priorities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the list of indicators to measure the achievement of the specific objectives of the Programme
, in respect of establishing and updating the Multi-Annual Strategic Plan for the customs field and in respect of the establishment of the multiannual work programmes
. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (13). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 64]











(18)


In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (14), Council Regulation (Euratom, EC) No 2988/95 (15), Council Regulation (Euratom, EC) No 2185/96 (16) and Council Regulation (EU) 2017/1939 (17), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (18). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.










(19)


Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.










(20)


The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver 
the best
 results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. [Am. 19]











(21)


Since the objective of this Regulation cannot be sufficiently achieved by the individual Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity, as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.










(22)


This Regulation replaces Regulation (EU) No 1294/2013 of the European Parliament and of the Council, which should therefore be repealed,




HAVE ADOPTED THIS REGULATION:
CHAPTER I
GENERAL PROVISIONS

Article 1
Subject matter

1.   This Regulation establishes the ‘Customs’ programme for cooperation in the field of customs (‘Programme’).


2.   It lays down the objectives of the Programme, the budget for the period 2021 — 2027, the forms of Union funding and the rules for providing such funding.



Article 2
Definitions
For the purposes of this Regulation, the following definitions shall apply:






(1)


‘customs authorities’ means the authorities defined in point (1) of Article 5 of Regulation (EU) No 952/2013;










(2)


‘European electronic systems’ means electronic systems necessary for the customs union and for the execution of the mission of customs authorities










(3)


‘third country’ means a country that is not member of the Union.






Article 3
Programme objectives

1.   
With a view to achieving the long-term aim that all customs administrations in the Union work together as closely as possible, and in order to guarantee the security and safety of the Member States and to protect the Union against fraud, unfair and unlawful commercial practices, and at the same time, promote legitimate business activities and a high level of consumer protection, the general objective of
 the Programme has the general objective

is
 to support the customs union and 
the
 customs authorities to protect

in protecting
 the financial and economic interests of the Union and its Member States, to ensure security and safety within the Union and to protect the Union from unfair and illegal trade, while facilitating legitimate business activity. [Am. 20]



2.   The Programme has the 
following
 specific objective

objectives:










(1)




to support the preparation and uniform implementation of customs legislation and policy as well as customs cooperation;












(2)





and administrative

to assist with IT
 capacity building, including human competency and the development and operation of European

which consists in developing, maintaining and operating the
 electronic systems 
as referred to in Article 278 of the Union Customs Code, and enabling a smooth transition to a paperless environment and trade in line with Article 12 of this Regulation
.












(3)






to finance joint actions, which consist in cooperation mechanisms enabling officials to carry out joint operational activities under their core responsibilities, share experience in the customs field and join efforts to deliver on customs policy;














(4)






to enhance human competencies, supporting the professional skills of customs officials and empowering them to fulfil their role on a uniform basis;














(5)






to support innovation in the area of customs policy.[Am. 21]









2a.
   
The Programme shall be consistent with and exploit any synergies with other Union action programmes and funds with similar objectives in related fields. [Am. 22]





2b.
   
The implementation of the Programme shall respect the principles of transparency, proportionality, equal treatment and non-discrimination. [Am. 23]





2c.
   
The Programme shall also support the continuous evaluation and monitoring of the cooperation between customs authorities with a view to identifying weaknesses and possible improvements. [Am. 24]




Article 4
Budget

1.   The financial envelope for the implementation of the Programme for the period 2021 — 2027 shall be EUR 
842 844 000 in 2018 prices (EUR
 950 000 000 in current prices). [Am. 25]



2.   
When necessary and duly justified,
 the amount referred to in paragraph 1 may also cover expenses for preparation, monitoring, control, audit, evaluation and other activities for managing the Programme and evaluating 
its performance and
 the achievement of its objectives. It may moreover cover expenses relating to studies, meetings of experts, information and communication actions 
by the Commission addressed to Member States and economic operators
, in so far as they are related to the objectives of the Programme, as well as expenses linked to information technology networks focusing on information processing and exchange, including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the Programme
, in so far as such activities are required for the achievement of the objectives of the Programme
. [Am. 26]





2a.
   
The Programme shall not be used to cover costs relating to the potential withdrawal of the United Kingdom from the Union. The Commission shall reserve upon its own assessment resources in order to cover the costs relating to the disengagement of the United Kingdom from all Union customs systems and cooperation, and the lapsing of its legal obligations in this area.




Before reserving those resources, the Commission shall make an estimate of the potential costs, and shall inform the European Parliament once data relevant for that estimate become available. [Am. 27]




Article 5
Third countries associated to the Programme
The Programme shall be open to the following third countries:






(a)


acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries;










(b)


countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries, provided that those countries have reached a sufficient level of approximation of the relevant legislation and administrative methods to those of the Union;










(c)


other third countries, in accordance with

under
 the conditions laid down in a specific agreement covering

on
 the participation of the

a
 third country to

in
 any Union programme, provided that the agreement: [Am. 28]







—


ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes;










—



lays down

establishes
 the conditions of

for
 participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues

revenue
 in accordance with Article [21(5)] of Regulation [2018/XXX] [the new Financial Regulation]; [Am. 29]











—


does not confer to the third country a decisional power on the Programme;










—


guarantees the rights of the Union to ensure sound financial management and to protect its financial interests.










Article 6
Implementation and forms of EU funding

1.   The Programme shall be implemented in direct management in accordance with the Financial Regulation.


2.   The Programme may provide funding in any of the forms laid down in the Financial Regulation, in particular grants, prizes, procurement and reimbursement of travel and subsistence expenses incurred by external experts.


CHAPTER II
ELIGIBILITY

Article 7
Eligible actions

1.   Only actions implementing the objectives referred to in Article 3 shall be eligible for funding.


2.   Actions complementing or supporting the actions implementing the objectives referred to in Article 3 of Regulation (EU) [2018/XXX] [CCE instrument] 
and/or complementing or supporting the actions implementing the objectives referred to in Article 2 of Regulation (EU) [2018/XXX] [Anti-Fraud Programme]
 shall also be eligible for funding under this Programme. [Am. 30]



3.   Actions referred to in paragraphs 1 and 2 shall include the following:






(a)


meetings and similar ad-hoc events;










(b)


project-based structured collaboration
, such as collaborative IT development by a group of Member States
; [Am. 31











(c)


IT capacity building actions, in particular the development and operation of European electronic systems;










(d)


human competency and capacity building actions
, including training and exchange of best practices
; [Am. 32]











(e)


support and other actions, including:






(1)


studies;










(2)


innovation activities, in particular proof-of-concepts, pilots and prototyping initiatives;










(3)


jointly developed communication actions;












(3a)






monitoring activities; [Am. 33]











(4)


any other action provided for in the work programmes referred to in Article 13, which is necessary for attaining or in support of the objectives set out in Article 3.








Possible forms of actions referred to in points (a), (b) and (d) are presented in a non-exhaustive list in Annex 1.


4.   Actions consisting in the development
, deployment, maintenance
 and operation of adaptations or extensions to the common components of the European electronic systems for cooperation with third countries not associated to the Programme or international organisations shall be eligible for funding when they are of interest to the Union. The Commission shall put in place the necessary administrative arrangements, which may provide for a financial contribution from the third parties concerned to these actions. [Am. 34]



5.   Where an IT capacity building action referred to in point (c) of paragraph 3 concerns the development and operation of a European electronic system, only the costs related to the responsibilities entrusted to the Commission pursuant to Article 11(2) shall be eligible for funding under the Programme. Member States shall bear the costs related to the responsibilities entrusted to them pursuant to Article 11(3).



Article 8
External experts

1.   Wherever beneficial for the achievement of the actions implementing the objectives referred to in Article 3, representatives of governmental authorities, including those from third countries not associated to the programme

Programme
 pursuant to Article 5, 
academics and
 representatives of international and other relevant organisations, of economic operators and organisations representing economic operators and of civil society may take part as external experts to actions organised under the Programme. [Am. 35]



2.   Costs incurred by the external experts referred to in paragraph 1 shall be eligible for reimbursement under the Programme in accordance with the provisions of Article 238 of the Financial Regulation.


3.   The External experts shall be selected by the Commission based on 
the basis of
 their skills

competence
, experience and

in the field of application of this Regulation and their relevant
 knowledge relevant to

of
 the specific action 
being taken
, avoiding any potential conflict of interest. 
The selection shall strike a balance between business representatives and other civil society experts, as well as take into account the principle of gender equality. The list of external experts shall be regularly updated and made accessible to the public. [Am. 36]



CHAPTER III
GRANTS

Article 9
Award, complementarity and combined funding

1.   Grants under the Programme shall be awarded and managed in accordance with Title VIII of the Financial Regulation
, and specifically with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment
. [Am. 37]



2.   An action that has received a contribution from another Union programme may also receive a contribution under the Programme, provided that the contribution do not cover the same costs. The rules of each contributing Union programme shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.


3.   In accordance with Article 198(f) of the Financial Regulation, the grants shall be awarded without a call for proposals where the eligible entities are customs authorities of the Member States and of the third countries associated to the Programme as referred to in Article 5 of this Regulation, provided that the conditions set out in that Article are met.



Article 10
Co-financing rate

1.   By 
way of
 derogation to

from
 Article 190 of the Financial Regulation, the Programme may finance up to 100 % of 
the
 eligible costs of an action 
according to the relevance of the action and the estimated impact
. [Am. 38]



2.   The applicable co-financing rate where actions require the awarding of grants shall be set out in the multiannual work programmes referred to in Article 13.


CHAPTER IV
SPECIFIC PROVISIONS FOR IT CAPACITY BUILDING ACTIONS

Article 11
Responsibilities

1.   The Commission and the Member States shall ensure jointly 
ensure
 the development and operation 
of the European electronic systems listed in the Multi-Annual Strategic Plan for Customs referred to in Article 12
, including the

its
 design, specification, conformance testing, deployment, maintenance, evolution, 
modernisation,
 security, quality assurance and quality control, of the European electronic systems listed in the Multi-Annual Strategic Plan for Customs referred to in Article 12.
[Am. 39]



2.   The Commission shall, in particular, ensure the following:






(a)


the development and operation of common components as established under the Multi-Annual Strategic Plan for Customs provided for in Article 12;










(b)


the overall coordination of the development and operation of European electronic systems with a view to their operability, 
cyber-resilience,
 interconnectivity and continuous improvement and their synchronised implementation; [Am. 40]











(c)


the coordination at Union level of European electronic systems with a view to their promotion and implementation at national level;










(d)


the coordination of the development and operation of European electronic systems as regards their interactions with third parties, excluding actions designed to meet national requirements;










(e)


the coordination of European electronic systems with other relevant actions relating to e-Government at Union level.












(ea)






an efficient and swift communication with and between Member States with a view to streamlining the governance of the Union’s electronic systems; [Am. 41]













(eb)






a timely and transparent communication with the stakeholders concerned with the implementation of IT systems at Union and Member States level, in particular about delays in the implementation of and spending relating to Union and national components. [Am. 42]







3.   The Member States shall, in particular, ensure the following:






(a)


the development and operation of national components as established under the Multi-annual Strategic Plan for Customs provided for in Article 12;










(b)


the coordination of the development and operation of the national components of European electronic systems at national level;










(c)


the coordination of European electronic systems with other relevant actions relating to e-Government at national level;










(d)



the regular provision to

providing
 the Commission of

with regular
 information regarding

on
 the measures taken to enable their respective

the
 authorities or economic operators 
concerned
 to make full 
and effective
 use of 
the
 European electronic systems; [Am. 43]











(e)


the implementation at national level of European electronic systems.







Article 12
Multi-Annual Strategic Plan for Customs (MASP-C)

1.   The Commission shall draw up and keep updated

adopt delegated acts in accordance with Article 17, supplementing this Regulation by establishing and updating
 a Multi-Annual Strategic Plan for 
the
 customs 
field
 listing all 
the
 tasks relevant for the development and operation of European electronic systems and classifying each system, or part thereof,

of a system
 as: [Am. 65]







(a)


a common component: a component of the European electronic systems developed at Union level, which is available for all Member States or identified as common by the Commission 
as being common
 for reasons of efficiency, security and

of
 rationalisation 
and reliability
; [Am. 45]











(b)


a national component: a component of the European electronic systems developed at national level, which is available in the Member State that created such a component or contributed to its joint creation
, for instance as part of a collaborative IT development project by a group of Member States [Am. 46];










(c)


or a combination of both.






2.   The Multi-Annual Strategic Plan for Customs shall also include innovation and pilot actions as well as the supporting methodologies and tools related to the European electronic systems.


3.   Member States shall notify the Commission of the completion of each task allocated to them under the Multi-Annual Strategic Plan for Customs referred to in paragraph 1. They shall also regularly report to the Commission on progress with their tasks 
and where applicable about foreseeable delays in their implementation
. [Am. 47]



4.   No later than 31 March of each year, the Member States shall submit to the Commission annual progress reports on the implementation of the Multi-Annual Strategic Plan for Customs referred to in paragraph 1 covering the period 1 January to 31 December of the preceding year. Those annual reports shall be based on a pre-established format.


5.   No later than 31 October of each year, the Commission shall, on the basis of the annual reports referred to in paragraph 4, establish a consolidated report assessing the progress made by Member States and the Commission in the implementation of the plan referred to in paragraph 1
, including information on necessary adaptations of or delays with the plan,
 and make that report public. [Am. 48]



CHAPTER V
PROGRAMMING, MONITORING, EVALUATION AND CONTROL

Article 13
Work programme

1.   The Programme shall be implemented by Multiannual work programmes 
as
 referred to in Article 108

110
 of the Financial Regulation 
shall be adopted for the purposes of the Programme
. 
The multiannual work programmes shall in particular set out the objectives to be pursued, the expected results, the method of implementation and the total amount of the financing plan. They shall also set out in detail a description of the actions to be financed, an indication of the amount allocated to each action and an indicative implementation timetable. [Am. 66]



2.   
The Commission shall adopt delegated acts in accordance with Article 17, supplementing this Regulation by establishing
 the multiannual work programmes shall be adopted by the Commission by means of implementing acts. Those implementing acts shall be adopted in accordance with the procedure referred to in Article 18(2). [Am. 67]





2a.
   
The multiannual work programmes shall build on lessons learned from previous programmes. [Am. 51]




Article 14
Monitoring and reporting

1.   Indicators to report on progress

In compliance with its reporting requirements pursuant to point (h) of Article 41(3) of the Financial Regulation, the Commission shall present to the European Parliament and the Council information on the performance
 of the Programme towards the achievement of the specific objectives set out in Article 3 are set in Annex 2

. Reporting on performance shall include information on both progress and shortfalls
. [Am. 52]



2.   
Indicators for reporting on the performance of the Programme towards the achievement of the specific objectives provided for in Article 3 are set out in Annex 2.
 To ensure effective assessment of progress of the Programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 17 to amend Annex 2 to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework 
in order to provide the European Parliament and the Council with updated qualitative as well as quantitative information on the performance of the Programme
. [Am. 53]



3.   The performance reporting system shall ensure that 
the
 data for 
the
 monitoring programme

of the
 implementation and 
the
 results 
of the Programme
 are 
comparable and complete as well as
 collected efficiently, effectively, and in a

in an efficient, effective and
 timely manner. To that

this
 end, proportionate 
and relevant
 reporting requirements shall be imposed on 
the
 recipients of Union funds. 
The Commission shall provide the European Parliament and the Council with reliable information on the quality of the performance data used. [Am. 54]




Article 15
Evaluation

1.   Evaluations shall be carried out in a timely manner to feed into the decision-making process.


2.   The interim evaluation of the Programme shall be performed once there is

carried out as soon as
 sufficient information available about the

on its
 implementation of the Programme

is available
, but no later than four

three
 years after the start of the programme implementation. [Am. 55]





2a.
   
The interim evaluation shall present findings necessary to make a decision about a follow-up to the Programme beyond 2027 and its objectives. [Am. 56]



3.   At the end of the implementation of the Programme, but no later than four

three
 years after the end of the period specified

referred to
 in Article 1, 
the Commission shall carry out
 a final evaluation of the Programme shall be carried out by the Commission. [Am. 57]



4.   The Commission shall 
present and
 communicate the conclusions of the evaluations, accompanied by its observations 
and lessons learned
, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. [Am. 58]




Article 16
Audits and investigations
Where a third country participates in the programme by a decision under an international agreement or by virtue of any other legal instrument, the third country shall grant the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF), the European Court of Auditors 
and the European Public Prosecutor's Office (EPPO)
 to comprehensively exert their respective competences. In the case of OLAF 
and the EPPO
, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013concerning investigations conducted by the European Anti-Fraud Office (OLAF)

and in Council Regulation (EU) 2017/1939
 (19). [Am. 59]


CHAPTER VI
EXERCISE OF THE DELEGATION AND COMMITTEE PROCEDURE

Article 17
Exercise of the delegation

1.   The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.


2.   The power to adopt delegated acts referred to in Article

Articles 12(1), 13(2) and
 14(2) shall be conferred on the Commission until 31 December 2028. [Am. 68]



3.   The delegation of power referred to in Article

Articles 12(1), 13(2) and
 14(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. [Am. 69]



4.   Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.


5.   As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.


6.   A delegated act adopted pursuant to Article

Articles 12(1), 13(2) and
 14(2) shall enter into force if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 70]





Article 18


Committee procedure



1.   The Commission shall be assisted by a committee referred to as the ‘Customs Programme Committee’. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.




2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
[Am. 71]



CHAPTER VII
TRANSITIONAL AND FINAL PROVISIONS

Article 19
Information, communication and publicity

1.   The recipients of Union funding shall acknowledge the origin and ensure the

maximum
 visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public. [Am. 60]



2.   The Commission shall implement information and communication actions relating to the Programme, and its

on the Programme, on the
 actions 
financed under the Programme
 and 
on the
 results 
achieved by those financed actions
. 
The
 financial resources allocated to the Programme shall also contribute to the corporate

institutional
 communication of the 
Union's
 political priorities of the Union, as

in so
 far as they are related

linked
 to the objectives referred to

set out
 in Article 3. [Am. 61]




Article 20
Repeal

1.   Regulation (EU) No 1294/2013 is repealed with effect from 1 January 2021.


2.   Decision No 70/2008/EC is repealed with effect from 1 January 2021.



Article 21
Transitional provisions

1.   This Regulation shall not affect the continuation or modification of the actions concerned, until their closure, under Regulation (EU) No 1294/2013, which shall continue to apply to the actions concerned until their closure.


2.   The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted under its predecessor, the Regulation (EU) No 1294/2013.


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



Article 22
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.


This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at …,


For the European Parliament


The President




For the Council


The President





(1)  OJ C 62, 15.2.2019, p. 45.

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

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

(4)  https://ec.europa.eu/taxation_customs/general-information-customs/customs-risk-management/measures-customs-risk-management-framework-crmf_en


(5)  https://ec.europa.eu/taxation_customs/general-information-customs/customs-risk-management/measures-customs-risk-management-framework-crmf_en

(6)  OJ C 373, 20.12.2013, p. 1


(7)  COM(2016)0605 final

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).



(8)  Proposal for a Regulation of the European Parliament and of the Council establishing, as part of the Integrated Border Management Fund, the instrument for financial support for customs control equipment

(9)  COM(2010)0700

(10)  Decision No 70/2008/EC of the European Parliament and of the Council of 15 January 2008 on a paperless environment for customs and trade (OJ L 23, 26.1.2008, p. 21).

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


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

(13)  

OJ L 123, 12.5.2016, p. 1.



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

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

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

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

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

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







ANNEX 1



Non-exhaustive list of possible forms of actions referred to in points (a), (b) and (d) of the first sub-paragraph of Article 7(3)

Actions referred to in points (a), (b) and (d) of the first sub-paragraph of Article 7(3) may take the forms, among others, of:






(a)


As regards meetings and similar ad-hoc events:






—


Seminar and workshop, generally attended by all countries and at which presentations are made and participants engage in intensive discussion and activity on a particular subject;










—


Working visit, organised to enable officials to acquire or increase their expertise or knowledge in customs matters;














(b)


As regards project-based structured collaboration:






—


Project group, generally composed of a limited number of countries, operational during a limited period of time to pursue a predefined objective with a precisely defined outcome, including coordination or benchmarking;










—


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










—


Monitoring activity, carried out by joint teams made up of Commission officials and officials of the eligible authorities to analyse customs practices, identify any difficulties in implementing rules and, where appropriate, make suggestions for the adaptation of Union rules and working methods;














(c)


As regards human competency and capacity building actions:






—


Common training or development of eLearning to support the build-up of the necessary professional skills and knowledge relating to customs;










—


Technical support, aimed at improving administrative procedures, enhancing administrative capacity and improving customs authorities’ functioning and operations by initiating and sharing good practices.














ANNEX 2



Indicators

Specific objective: Support the preparation and uniform implementation of customs legislation and policy as well as customs cooperation and administrative capacity building, including human competency and the development and operation of the European electronic systems for customs.


1.
   
Capacity Building (administrative, human and IT capacity):








1.


Union Law and Policy Application and Implementation Index (Number of actions under the Programme organised in this area and recommendations issued following those actions)










2.


Learning Index (Learning modules used; number of officials trained; quality score by participants)










3.


Availability of European electronic systems (in time percentage terms)










4.


Availability of the Common Communication Network (in time percentage terms)










5.


Use of key European electronic systems aimed at increasing interconnectivity and moving to a paper-free Customs Union (number of messages exchanged and consultations carried out)










6.


UCC completion rate (percentage of milestones reached for implementing UCC systems)






2.
   
Knowledge sharing and networking:








1.


Collaboration Robustness Index (degree of networking generated, number of face-to-face meetings, number of on-line collaboration groups)










2.


Best Practices and Guideline Index (number of actions under the Programme organised in this area; percentage of participants that made use of a working practice/guideline developed with the support of the Programme)