Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code
Date: 2022-11-20
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: customs union



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PUBLIC CONSULTATION ON THE REVISION OF THE UNION CUSTOMS CODE 



Disclaimer: this document should be regarded solely as a summary of the contributions made by stakeholders to the public consultation on the revision of the Union Customs Code. It cannot in any circumstances be regarded as the official position of the Commission or its services. Responses to the consultation activities cannot be considered as a representative sample of the views of the EU population



FACTUAL SUMMARY REPORT 



1.BACKGROUND


In the context of a deep reflection to make the customs union fit for the future, the European Commission is preparing a proposal to reform customs legislation and is assessing its expected impacts. The overall aim of the initiative is to make customs in the EU function “as one” in protecting citizens, the internal market and the environment, in simplifying customs processes for legitimate businesses and in ensuring an efficient governance structure.


This report presents the factual results of the public consultation carried out from 20 July until 19 September 2022 as part of the impact assessment on the revision of the Union Customs Code (UCC). The questionnaire consisted of 38 questions, divided into five sections, focused on respondents’ profiles, interactions with customs, views on the customs union, on the issues at stake and on the potential policy options and related impacts. The target audience was primarily stakeholders involved in customs matters (e.g. businesses, trade associations, customs authorities, individuals, and other non-customs stakeholders) regarding the state of the customs union and possible reform elements.


2.ABOUT THE RESPONDENTS


The survey received 194 responses, two of which were duplicated, leaving a total of 192 valid responses. The majority (80.4%) of respondents represented business interests, predominantly in the following sectors: industrial production, customs representation, logistics/carriers, import/export of goods. 


Figure 1: Profiles and countries of origin of the respondents







Most replies were given by large organisations (34.5%), followed by micro (25.3%), medium (14.9%) and small (14.4%) enterprises. EU citizens represented 10.3% of respondents, while organised civil society (NGOs, environmental organisations, consumer organisations, trade unions) represented 4.6% of respondents. Only one public authority at regional level and one non-EU citizen participated to the consultation. 


3.INTERACTION WITH CUSTOMS


The vast majority of respondents (77.2%) are involved in customs operations or procedures daily or almost daily; around three-quarter of them, deal regularly with multiple customs offices or Member States. Respondents among the latter find that Member States execute similar operations in different ways, for example on customs valuation, frequency and level of controls, timing of clearance procedure, approach to representation and to facilitations, interpretation of basic definitions and application of UCC simplifications.


Figure 2: Frequency of interactions with customs operations and authorities







4.OVERALL VIEWS ON THE CUSTOMS UNION


According to their replies, the respondents to the public consultation think that customs authorities are doing overall well in achieving the objectives of their mission (such as ensuring protection of the EU financial interests, compliance with EU product rules and combatting smuggling). However, in certain areas the perception is negative. These are related with customs not keeping-up with new business models and technologies, not combatting pollution, not ensuring supply chain due diligence and not promoting EU values internationally (e.g. human rights, environmental protection), and relatedly not combatting enough child/forced labour or inhuman working conditions in the international supply chain.


Figure 3: Contribution of customs to the achievement of relevant objectives







As for the needs and priorities of respondents regarding a possible reform of the customs union, customs acting as one is very important for 79.58% of respondents (152/191 replies), followed by simpler rules for simpler processes (64.92%, 124/191 replies). A more effective cooperation between customs and non-customs authorities is also seen as very important for 114 respondents out of 191. 




5.VIEWS ON THE ISSUES AT STAKE


Respondents were asked about specific issues that could be addressed by a customs reform to solve the challenges that they currently face:


·Reduce administrative burden: a very large majority of respondents (almost 80%, 150/188 replies) see the need to simplify how information is provided to customs so as to reduce their administrative burden and formalities. 


·Customs’ role in enforcing prohibitions and restrictions on goods: a large majority of respondents (68.1%, 128/188 replies) finds it easy to buy online non-compliant goods from third countries. Respondents are split among those who do not face competition from non-compliant imported goods ((46.8%, 88/188 replies) and those who do face such competition (41.5%, 78/188 replies). They largely agree (155/188 respondents) that there needs to be a more efficient framework for cooperation between customs and other authorities responsible for market surveillance, law enforcement, anti-fraud, for sharing data on the products entering or exiting the EU. However, 107 of 188 respondents think that no additional information on imported goods should be required by customs, against 59 out of 188 who think it should.


·Customs’ contribution to green agenda: 93 respondents replied to the open question asking about potential measures for customs to contribute to reaching the EU Green Deal’s objectives. These included reduction/elimination of import VAT and customs duties on sustainable or recycled goods, full digitalisation for reducing the use of paper documents, implementation of CBAM, facilitations for operators that voluntarily reduce their carbon footprint in their activities and giving priority to tackling wildlife trafficking.


6.VIEWS ON POLICY OPTIONS


Asked about specific policy changes that could be included in a reform of the customs union, a large majority of the respondents would strongly agree to include the following:


·Simplifying customs formalities for EU-established trusted traders;


·Enhancing co-operation between customs and non-customs authorities, such as on information exchange, operational coordination and improved enforcement of prohibitions and restrictions;


·Providing for an EU-level customs information environment, with preferred features such as a simplified provision of data, data management capabilities and the concept of “single window” for handling of non-customs formalities;


·Adapting customs legislation to e-commerce transactions, for example by strengthening supervision of flows and liability of involved actors for all fiscal and non-fiscal rules;


Two policy elements were least favoured by respondents. Reforming the EU customs governance to provide for an EU layer should be an essential element of the initiative only 68 out of 190 while integrating the green agenda in customs processes should be part of a reform only for 59 out of 109 replies.


Figure 4: Complete overview of the respondents’ views about the policy options (190 total replies)












As for the impacts, the highest positive impacts for respondents would derive from the provision of an EU single IT environment (122/190 replies), a new partnership with trusted traders, including simplification to the customs processes (118/190 replies) and a better cooperation of customs and non-customs authorities (111/190 replies). Positive impacts are also perceived from the introduction of an EU layer in the customs governance structure (high positive impact for 75/190 and limited positive impacts for 64/190 respondents) and from the adaptation of customs legislation to the specificities of e-commerce transactions (high positive impact for 70, limited positive impact for 68 out of 190 replies). As for the integration of the green agenda in customs agenda and traders’ behaviour, the respondents who consider that this would have limited positive impacts are more than those who think the impacts would be highly positive (respectively, 79 and 40 out of 190 replies).


7.NEXT STEPS


The public consultation was part of the consultation activities carried out by the European Commission in the preparation of the impact assessment on the revision of the Union Customs Code. These included a call for evidence launched simultaneously with the public consultation and targeted consultations with expert stakeholders (customs authorities of the Member States in the context of the Reflection Group and business/trade associations in the context of the Trade Contact Group). The results of such consultation will be included in the synopsis report annexed to the impact assessment.


The European Commission will further analyse the replies to the public consultation in order to integrate the views expressed by stakeholders in the reflection on the reform of customs legislation. The abovementioned activities, in particular, will help the Commission in the preparation of the impact assessment and in the drafting of the legislative proposal for the revision of the Union Customs Code.