REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the functioning of the inspection arrangements for traditional own resources (2022-2024) pursuant to Article 6(3) of Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for the system of own resources of the European Union
Date: 2026-04-23
Institutions: Directorate-General for Budget, European Commission
Subjects: EU budget, EU control, auditing, budgetary assessment, budgetary control, customs union, electronic commerce, financial control, fraud against the EU, own resources

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.4.2026  COM(2026) 158 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the functioning of the inspection arrangements for traditional own resources (2022-2024) pursuant to Article 6(3) of Council Regulation (EU, Euratom) 2021/768 of 30 April 2021 laying down implementing measures for the system of own resources of the European Union                                                          
 
 
EXECUTIVE SUMMARY 

The Commission reports every three years to the European Parliament and to the Council 
on the functioning of the inspection arrangements for traditional own resources (TOR). This 
report  provides  detailed  information  about  the  inspection  activities  carried  out  between 
2022 and 2024. 

Between  2022  and  2024,  the  Commission  continued  implementing  its  measures  against 
fraudulently  undervalued  textiles  and  footwear  from  the  People’s  Republic  of  China 
imported to both the United Kingdom and the Member States. The Commission launched 
infringement proceedings against the UK in 2018, and in 2022 the Court of Justice of the 
European Union ruled in favour of the Commission (C-213/19). Based on this landmark 
case,  the  Commission  ultimately  brought  almost  EUR 3  billion  of  additional  TOR  and 
interest to the EU budget in 2023. As a result of the legal clarifications by the Court and the 
enforcement action by the Commission, Member States considerably improved their control 
strategies in this area. The Commission is now concluding pending undervaluation cases in 
cooperation  with  the  Member  States  concerned,  which  involves  determining  the  final 
amounts of related TOR losses and interest. 

In connection with the UK’s withdrawal from the EU on 1 January 2021, the Commission 
continues to ensure the payment of outstanding TOR amounts owed by the UK in line with 
the Withdrawal Agreement. 

Between 2022 and 2024, the Commission also increased its targeted ad hoc measures to 
protect the EU budget by building upon inspection findings, for example, with desk audits 
of imports of solar panels and cells declared as originating in Malaysia and in Taiwan in 
all  Member  States.  As  a  result,  by  31 December 2024,  Member  States  made 
EUR 376.8 million of additional TOR relating to these goods available to the EU budget. 

In  addition,  the  planned  annual  inspection  activities  included  topics  such  as:  (i)  the 
management  of  the A  account  and  the  B  account;  (ii)  e-commerce;  (iii)  the  end-use 
procedure; and (iv) anti-dumping and countervailing duties. 

Finally,  the  report  covers  other  regular  activities  carried  out  to  protect  the  financial 
interests of the EU: (i) the follow-up measures addressing the European Court of Auditors’ 
preliminary  findings;  (ii)  the  examination  of  irrecoverable  entitlements  that  have  been 
written off by Member States; (iii) the follow-up in respect of the amounts made available 
on a voluntary basis; (iv) the treatment of Member States’ errors; (v) the management of 
the database relating  to  fraud and irregularities; and  (vi) the assistance  provided to  the 
candidate countries. 

1 

 
 
 
 
 
1. 

INTRODUCTION 

From 2022 to 2024, traditional own resources (TOR)1 totalling over EUR 68 billion (net) were 
made available to the EU budget, with a yearly average of around EUR 22.7 billion. 

TOR inspections are based on Council Regulation (EU, Euratom) 2021/768 of 30 April 20212. 

The Commission reports every three years3 to the European Parliament and to the Council on 
the functioning of the inspection arrangements for TOR. 

This report describes and analyses the operation of the inspection system for TOR in the period 
from 2022 to 20244. It also describes the TOR inspections carried out by the Commission over 
this period and covers other activities the objective of which is to protect the financial interests 
of the EU, including: 

−  on-the-spot inspections and targeted desk audits carried out by the Commission in the 

Member States and the follow-up to those inspections; 

− 

follow-up to the European Court of Auditors’ preliminary findings; 

−  examination of irrecoverable entitlements written off by Member States; 

− 

treatment of Member States’ errors leading to a loss of TOR; 

−  management of the database for Member States’ reporting on fraud and irregularities 

with an impact on TOR (OWNRES); 

−  assistance to EU candidate countries (Chapter 33); 

−  contributions to amending the Making Available Regulation5. 

The activities listed above are carried out by a small team of 18 staff, ensuring that TOR are 
collected in a timely manner and that Member States apply the legal provisions correctly. The 
team also provides guidance to national authorities: (i) during the inspection visits; (ii) during 
the biannual meetings of the Advisory Committee on Own Resources (ACOR); or (iii) on an 
ad hoc basis. 

1 Customs duties on products imported from non-EU countries, plus sugar levies. 
2  Council  Regulation  (EU,  Euratom)  2021/768  of  30 April  2021  laying  down  implementing  measures  for  the 
system of own resources of the European Union and repealing Regulation (EU, Euratom) No 608/2014, OJ L 165, 
11.5.2021, p. 1. 
3 Pursuant to Article 6(3) of Regulation (EU, Euratom) 2021/768. 
4 The report focuses on the checks carried out by the EU institutions (the Commission and the Court of Auditors). 
It does not cover checks carried out by the Member States, the detailed results of which are set out in the annual 
report drawn up under Article 325 of the Treaty on the Functioning of the European Union. 

5 Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure  for making 
available  the  traditional,  VAT  and  GNI-based  own  resources  and  on  the  measures  to  meet  cash  requirements 
(recast), OJ L 168, 7.6.2014, p. 39. This regulation is known as the ‘Making Available Regulation’. 

2 

 
 
 
 
 
 
2. 

TOR INSPECTIONS: FRAMEWORK AND METHODOLOGY 

2.1.  The regulatory and operational framework for TOR 

The collection of TOR is delegated to the Member States under EU law. They must make the 
customs duties – which they have themselves established and collected – available6 to the EU 
budget.  During  the  reporting  period,  Member  States  continued  applying  a  25%  flat  rate  in 
respect of all amounts of TOR established7 as compensation for collection costs, regardless of 
the costs actually incurred. This means that the Commission only receives 75% of the customs 
duties collected, while Member States retain 25% as collection costs. Member States are also 
required  to  carry  out  customs  checks  and  to  report  the  findings  of  these  checks  to  the 
Commission. 

Nevertheless, the Commission retains considerable inspection powers with respect to TOR. In 
this  context,  on-the-spot  inspections  are  an  important  tool  to  supervise  the  TOR  collection 
system,  allowing  the  Commission  to  carry  out  several  types  of  checks8  on  Member  States’ 
customs accounts, procedures and documents. 

The Commission is also required to respond to both: (i) the observations made by the Court of 
Auditors  in  its  annual  report,  (ii)  special  reports  or  preliminary  findings;  and  (iii)  the 
observations  and  recommendations  made  by  the  European  Parliament  during  the  discharge 
procedure in respect of the implementation of the budget. 

The Commission’s inspection activities have three main objectives, which are set out in the 
three bullet points below. 

−  The  first  objective  is  to  maintain  a  level  playing  field  between  Member  States, 
regardless  of  where  the  goods  are  cleared  through  customs  in  the  EU  to  prevent 
distortions of competition. 

−  The second objective is to ensure that customs duties are established and recovered in 
a timely manner. The Commission must be assured that Member States are complying 
with their responsibilities for collecting and making the corresponding TOR available. 
The Commission examines the measures taken by the Member States concerning the 
recovery  of  TOR,  including  the  timely  notification  of  the  customs  debt  and  the 
necessary enforcement procedures. 

−  The third objective is to inform the budgetary authority (the European Parliament and 
the  Council  of  the  European  Union)  and,  as  a  result,  to  obtain  confirmation  of  the 
discharge of its duties. Based on the inspection findings, the Commission assesses the 

6 The terms ‘make available’, mean that Member States make payments to the EU budget. 
7 Over the years, this percentage changed from 10% for amounts made available before 28 February 2001, to 25% for amounts 
made available between 1 March 2001 and 28 February 2014, and to 20% for amounts made available between 1 March 2014 
and 28 February 2021. For amounts made available after 1 March 2021 the percentage to be applied is 25%. 

8  Checks  on  procedures:  checks  on  the  Member  States’  provisions  concerning  the  TOR  collection  system.  Checks  on 
documents: analysis of accounting statements and all kinds of accounting documents and files from  the Member States, 
including the Member States’ reports on irrecoverable entitlements. On-the-spot inspections, desk audits: checks on the 
conformity  with  EU  legislation  of  national  systems  and  underlying  documents  from  both  the  accounting  and  customs 
perspective. These inspections are carried out jointly with the Member States concerned. 

3 

 
 
 
effectiveness and diligence of the Member States in establishing and collecting customs 
duties  and  making  the  corresponding  TOR  available.  The  Commission  requests 
measures to be taken to remedy any shortcomings, so that, ultimately, it can submit a 
report to the budgetary authority. 

The  inspections  also  help  to  ensure  the  effective  functioning  of  the  Customs  Union,  the 
protection of EU producers and the uniform application of EU rules. They also help eliminate 
loopholes that make it possible for fraudsters to abuse the system or evade paying the applicable 
duties. 

Inspection  findings  provide  important  input  for  Directorate-General  for  Budget’s  revenue 
policy  on  the  regulatory  framework  for  current  and  possible  future  own  resources.  These 
findings are also shared with other Commission services (for example, DG Taxud9, DG Trade10, 
and OLAF11) to help them address the shortcomings identified at policy level. 

The current Own Resources Decision12 and Regulation (EU, Euratom) 2021/768 laying down 
implementing  measures  have  applied  since  1 January  2021.  In  addition,  the  continuous 
development of trade facilitation and simplification measures requires regular adaptation of the 
TOR checks carried out by the Commission and the Member States. 

2.2.  Objectives and methodology of on-the-spot and remote inspections in respect of 
TOR 

The main objective of the checks on TOR is to gain assurance that the procedures in place in 
the Member States comply with the relevant EU legislation and that the EU’s financial interests 
are appropriately protected wherever the goods are cleared. Each year, the inspections focus on 
specific customs and accounting topics. This helps harmonise and improve the procedures in 
place  in  the  Member  States  with  a  view  to  protecting  the  financial  interests  of  the  EU  in  a 
consistent manner. 

The  Commission’s  on-the-spot  inspections  are  planned  as  part  of  an  annual  inspection 
programme,  which  is  based  on  a  risk  analysis  and  contains  the  topics  to  be  checked  in  the 
Member  States. These  inspections  are  carried  out  in  line  with  standardised  procedures  and 
involve  the  use  of  tailor-made  audit  tools  developed  by  DG  Budget  to  increase  the 
comparability of inspection results. 

The  inspection  topics  are  determined  based  on  suggestions  from  the  Member  States  or 
Commission  services  (e.g.  DG  Budget,  DG  Taxud,  OLAF).  Cooperation  between  the 
Commission  services  continues  at  the  stage  of  developing  the  audit  tools  and  through  an 
arrangement whereby other Commission services join DG Budget during the inspection visits. 
Furthermore,  DG  Taxud,  OLAF,  and  the  Legal  Service  are  systematically  consulted  and 
provide comments before the inspection reports are presented to the Advisory Committee on 

9 Directorate-General for Taxation and Customs Union 
10 Directorate-General for Trade and Economic Security 
11 European Anti-Fraud Office 
12 Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union 
and repealing Decision 2014/335/EU, Euratom, OJ L 424, 15.12.2020, p. 1 

4 

 
 
 
TOR. This approach ensures consistency across the Commission services and equal treatment 
of all Member States. 

Since 2020, the Commission has carried out additional ad hoc inspections and desk audits, as 
necessary, in areas where specific risks are identified. These targeted desk audits are mostly 
carried out remotely (e.g. solar panels, control strategy for COVID-19-related goods subject to 
duty relief). 

3. 

TOR  INSPECTIONS  CARRIED  OUT  BY  THE  COMMISSION  IN  THE 
PERIOD 2022-2024 

In the period 2022-2024, the Commission carried out 56 TOR inspections under Article 2 of 
Regulation  (EU,  Euratom)  2021/768,  which  gave  rise  to  161  findings. Table  1  provides  an 
overview of the inspection activities per Member State during that period. 

Of the 161 findings made, at least 103 (64%) had a direct financial impact (i.e. Member States 
had to make available additional TOR) and 21(13%) had a regulatory impact. 

The inspections focused on accounting and customs matters. 

Table 1. Overview of inspection activities 2022-2024 

MS 

AT 

BE 

BG 

HR 

CY 

CZ 

DK 

EE 

FI 

FR 

DE 

EL 

HU 

IE 

IT 

LV 

LT 

LU 

MT 
NL 

A&B accounts 

ADD/CVD13 

E-commerce 

End use 

2022 

2023 

2024 

2022 

2024 

2022 

2023 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 

x 
x 

13 Control strategy for anti-dumping and countervailing duties (ADD/CVD) 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PL 

PT 

RO 

SK 

SI 

ES 

SE 

UK 

Total 

1 

x 

2 

x 

x 

x 

x 

x 

13 

x 

x 

x 

x 

9 

3.1.  Accounting matters 

x 

x 

x 

17 

x 

6 

8 

In 2022-2024, checks on the reliability of the A and B accounts14 and related statements 
were carried out in all Member States and the UK. The conclusion was that the procedures to 
draw up these statements generally complied with EU legislation and ensured the protection of 
the EU’s financial interests. The findings communicated by the Commission following these 
inspections  concern,  among  other  things:  (i)  the  late  establishment  and  notification  of  the 
customs debts; (ii) failure to make the amounts available to the EU budget or failure to do so in 
a timely manner; (iii) shortcomings in the enforcement of customs debts; (iv) incorrect entries 
in/removals  from  the  two  accounts;  (v)  shortcomings  in  the  write-off  procedures;  (vi) 
inconsistencies between the two accounts; and (vii) late removals from the B account. 

The management of the A account and the B account was inspected in all Member States as 
a second inspection topic in addition to the main customs topic. The inspections carried out in 
the period 2022-2024 confirmed that most errors in the A account and in the B account were 
one-offs, while systematic errors were exceptional. The Member States concerned accepted the 
financial consequences resulting from the findings made by the Commission. 

The  overall  situation  improved  between  2022  and  2024  compared  to  the  previous  reporting 
period due to the consideration given by the Commission’s inspections to these topics and to 
further  improvements  in  the  electronic  accounting  systems  used  by  the  Member  States  that 
reduce  the  risk  of  errors  resulting  from  national  authorities  manually  correcting  the  data. 
However, Member States need to continue to make every effort to ensure diligent management 
of the A and B accounts and to provide all the information required, so that the statements are 
complete, clear and transparent. 

In 2022, the B account was checked by means of dedicated desk audits in all Member States. 
During  these  audits,  the  Commission  targeted  open  B-account  cases,  effectively  supporting 
Member States in targeted clean-ups of their B accounts. 

14 Member States enter TOR in one of two accounts: 

- the normal account (A) for established amounts recovered or guaranteed (these amounts are paid into the EU budget); 
- the separate account (B) for established amounts which have not been recovered, or guaranteed amounts that have been 
contested.  TOR  corresponding  to  irrecoverable  customs  duties  are  to  be  withdrawn  from  the  separate  account  after  a 
specified period. Such TOR amounts must simultaneously be made available (paid) to the Commission unless they cannot 
be recovered for reasons which cannot be attributed to the Member State (see also point 5.1 below). 

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Moreover,  in  2022-2024  Member  States  took  additional  measures  among  others  by:  (i) 
evaluating their own financial responsibility; (ii) making the amounts available on a voluntary 
basis, where appropriate; and (iii) communicating them to the Commission using the Annex to 
the A account. 

In  conclusion,  even  though  some  shortcomings  were  identified  in  the  Commission’s 
inspections,  the  general  functioning  of  the A  and  B  account  systems  improved  through  the 
Commission’s TOR inspection work, resulting in better protection of the EU’s financial interest. 

3.2.  Customs matters 2022-2024 

The  customs  topics  selected  for  inspections  change  from  year  to  year,  with  special 
consideration being given to issues associated with the highest risk for the financial interests 
of the European Union. 

During the three-year period under scrutiny, the inspections focused on the following topics: 

- 

- 

- 

the control strategy for anti-dumping and countervailing duties (2022 and 2024); 

the control strategy for e-commerce and low-value consignments (2022); 

the control strategy for end-use (2023). 

In  2022  and  2024,  the  control  strategy  for  anti-dumping  and  countervailing  duties 
(ADD/CVD) was inspected in 17 Member States15. The control systems were assessed by the 
Commission as partially or generally satisfactory. The main shortcomings related to: (i) non-
implementation  or  late  implementation  of  risk  profiles;  (ii)  non-consistent  checks;  (iii)  late 
establishment of definitive anti-dumping duties and late making available of definitive anti-
dumping  duties  (including  accounting  of  provisional ADD/CVD  becoming  definitive);  (iv) 
non-establishment  or  late  establishment  of ADD/CVD  following  the  receipt  of  information 
from OLAF; and (v) the application of incorrect ADD/CVD rates. 

In  2022,  the  Commission  inspected  the  control  strategy  for  e-commerce  and  low-value 
consignments  in  six  Member  States.  The  control  systems  were  assessed  as  partially  or 
generally  satisfactory.  The  main  shortcomings  related  to  the  risk  management  and  control 
strategy for e-commerce and low-value consignments. 

In 2023, the Commission inspected the control strategy for the end-use procedure in 17 
Member States. The control systems were assessed as partially or generally satisfactory. The 
identified shortcomings included: (i) outdated national instructions; (ii) insufficient monitoring 
of authorisations; (iii) missing elements in authorisations; (iv) authorisations granted for long 
periods; (v) failure to communicate the bills of discharge or failure to do so in a timely manner; 
(vi) insufficient checks on declarations; (vii) indirect representatives lodging declarations; and 
(viii) declaration systems not checking whether the TARIC codes declared corresponded to the 
TARIC codes included in the authorisation. 

In 2022, the Commission carried out six desk audits on the control strategy for COVID-19-

15 The control strategy for anti-dumping and countervailing duties was also inspected in eight Member States in 2021. 

7 

 
 
 
related goods subject to duty relief. On 14 June 2022, the Commission requested the data to 
be provided by the Member States concerned. Some minor cases of financial  liability were 
identified,  and  the  Member  States  concerned  accepted  the  financial  consequences  where 
applicable. 

3.3.  Undervalued imports of textiles and footwear 

On 8 March 2022, the Court of Justice of the European Union (CJEU) ruled in favour of the 
Commission in the infringement case brought against the UK regarding undervalued textiles 
and footwear (C-213/19). This landmark case ultimately paved the way for additional payments 
by the UK to the EU budget of almost EUR 3 billion in TOR and interest. It also clarified more 
generally  the  responsibilities  of  Member  States  in  fighting  this  type  of  fraud  effectively, 
endorsing the measures recommended by the Commission since 2011. 

As  a  result  of  the  legal  clarifications  by  the  Court  and  the  enforcement  action  by  the 
Commission,  Member  States  considerably  improved  their  control  strategies  in  this  area. 
Several  Member  States  reviewed  their  organisational  structure  around  customs  risk 
management, creating new teams and hiring dedicated customs control staff. 

Regarding the financial responsibility in the context of this specific undervaluation fraud, the 
Commission and several Member States jointly concluded these cases with the final amounts 
due  having  been  paid.  For  the  remaining  Member  States,  this  process  of  determining  the 
amounts to be paid will be concluded soon. 

3.4. 

Solar panels 

In 2018 and 2019, the Commission carried out TOR inspections in 10 Member States to assess 
their control strategies with respect to imports of solar modules and key components declared 
as originating in  the People’s  Republic of China, Malaysia and Taiwan and subject  to  trade 
defence measures (anti-dumping and countervailing duties). 

Due to a recurrent shortcoming identified in three of these targeted inspections (a shortcoming 
that  was  related  to  the  misinterpretation  of  the  term  consigned  from  under  Commission 
Implementing  Regulations (EU) 2016/184  and 2016/185  of  11 February  2016),  DG  Budget 
extended the scope of its checks to all Member States importing the same goods in the period 
from 30 May 2015 to 3 September 201816. By letter of 1 June 2021, DG Budget informed 21 
Member States17 about the potential TOR losses resulting from the said misinterpretation for 
imports of solar panels and cells declared as originating in Malaysia and in Taiwan. 

By  31 December  2024,  for  12  Member  States,  the  follow-up  to  this  shortcoming  was 
considered  closed  either  because  no  TOR  were  lost  or  because  the  principal  amount  plus 
interest  were  paid  to  the  EU  budget,  totalling  EUR 376.8  million.  The  follow-up  to  the 
investigation of this shortcoming is ongoing for 12 Member States and the UK. 

16 Validity of trade defence measures. 
17 Including seven Member States previously subject to specific checks. Three Member States had already been 
subject  to  a  targeted  TOR  inspection  on  this  topic,  while  four  Member  States  had  no  such  imports  of  solar 
modules and cells during the period under scrutiny. 

8 

 
 
 
Finally, the Commission further clarified the meaning and scope of the term consigned from, 
as interpreted by the Court of Justice. The Commission was able to do this thanks to: (i) its 
inspection activities;  (ii) contacts  with  the Member States;  and (iii)  several  presentations  to 
Member States. This helped to achieve a level playing field for Member States and boost the 
level  of  protection  for  EU-based  companies  against  misdeclared  imports  evading  the 
Commission’s trade defence measures. 

4. 

FOLLOW-UP TO THE COMMISSION INSPECTIONS 

4.1.  Regulatory aspects 

Member States are asked to take measures whenever flaws or loopholes are detected in national 
regulations  or  administrative  provisions  during  the  inspections,  in  order  to:  (i)  bring  these 
regulations and provisions into line with EU requirements; and (ii) harmonise the establishment 
and  collection  of  TOR  in  all  27  Member  States.  This  regulatory  alignment  is  a  major 
achievement  of  the  Commission’s  inspections.  The  findings  are  also  a  key  indicator  of 
difficulties  encountered  by  the  Member  States  in  applying  customs  and  own  resources 
regulations,  and  they  inform  the  Commission’s  continuous  effort  to  improve  the  regulatory 
framework. For example, feedback from inspection findings was taken into account in Council 
Regulation  (EU,  Euratom)  2022/615  of  5 April  2022  amending  Regulation  (EU,  Euratom) 
No 609/2014 (see point 5.4 below). 

4.2.  Outcome of disputes 

The interpretation of legal provisions and the procedures in some Member States are not always 
in  line  with  the  Commission’s  requirements.  Where  a  dispute  cannot  be  resolved,  the 
Commission launches an infringement procedure18. 

In the period 2022-2024, the Commission opened 3 and closed 7 infringement procedures after 
compliance was ensured by the Member States concerned. It closed the infringement procedure 
against the UK (C-213/19) after the 2022 judgment of the CJEU and payment by the UK of all 
the amounts due in 2023. Only 4 infringement cases were ongoing in December 2024 (and 2 
of them were closed in 2025). 

The  first  case  concerning  unjust  enrichment,  i.e.  case  C-494/22  P  brought  by  Czechia,  was 
settled in favour of the Commission in 2024. In its ruling, the CJEU pointed to the autonomous 
responsibility of the Member States with regard to TOR and their obligation to act proactively 
to fully protect the financial interests of the EU. 

4.3. 

Financial aspects 

Following their control activities, the Commission considers the cases from the period 2022-
2024  closed,  and  the  final  amounts  of  additional  entitlements  totalling  more  than 
EUR 4 billion19 (in TOR and related interest) were determined and paid. These amounts were 
paid to the Commission mainly in relation to the undervaluation of textile products, footwear, 

18 Pursuant to Article 258 of the Treaty on the Functioning of the European Union. 
19 This number includes the amounts indicated in sections 3.3, 3.4 and 5.2 of this report. 

9 

 
 
 
and solar panels. They relate to the findings set out in the inspection reports, other inspection 
activities, OLAF final reports, and to the follow-up to the Court of Auditors’ findings. 

5. 

MEASURES TO IMPROVE THE RECOVERY OF TOR 

Apart from its on-the-spot inspections in the Member States, the Commission has several other 
means of monitoring the recovery of TOR. 

5.1.  Examination of irrecoverable entitlements that have been written off 

Member States must take all measures to make TOR available, except where recovery proves 
impossible pursuant to Article 13(2) of Regulation (EU, Euratom) 609/2014: 

- 

- 

for reasons of force majeure; 

for other reasons which cannot be attributed to them; or 

-  due to the deferral of the entry in the accounts or the notification of the customs debt in 
order not to prejudice a criminal investigation affecting the financial interests of the 
Union. 

In accordance with EU legislation, Member States must report to the Commission irrecoverable 
amounts  of  TOR  exceeding  EUR 100 000  (in  write-off  reports)  for  which  they  consider 
themselves not to be responsible. Subsequently, the Commission provides comments on each 
report. The purpose of the Commission’s examination of the write-off reports is to assess the 
degree of diligence shown by the Member States in fulfilling their autonomous responsibility 
to establish and recover from the economic operators the customs duties representing TOR. 

For  amounts  below  the  reporting  threshold,  the  Commission  routinely  assesses  samples  of 
cases during its on-the-spot inspections. 

To support Member States in evaluating their potential financial responsibility for irrecoverable 
TOR amounts, the Commission issued a working document – the Compendium, which sets out 
the  criteria  used  to  assess  write-off  reports.  The  Compendium  was  communicated  to  all 
Member  States  for  the  first  time  during  the ACOR  meeting  on  6 December  2012.  Its  latest 
revised version of 22 November 2024, which reflects changes to EU legislation and the relevant 
case law on TOR, was communicated to all Member States in their official languages at the 
ACOR  TOR  meeting  in  December  2024.  This  new  version  includes  all  the  relevant 
interpretations of the relevant EU law in line with the recent jurisprudence of the CJEU and the 
amendments introduced by the Making Available Regulation, as amended by Regulation (EU, 
Euratom) 2022/615. 

For each relevant write-off case above the specified threshold, Member States must draw up a 
structured  report  and  forward  it  to  the  Commission  using  a  multilingual  database  called 
WOMIS (Write-Off Management and Information System). The WOMIS database, which is 
regularly updated, enables the efficient and secure management of the Member States’ reports. 

The competent Commission services (DG Budget, DG Taxud, OLAF, and the Legal Service) 
assess  the  write-off  report  and  provide  comments  to  the  Member  State.  These  comments 

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concern the justification the Member State can provide for not making the TOR corresponding 
to the irrecoverable customs duties available to the Commission. 

Over  the  period  2022-2024,  a  total  of  88  new  write-off  reports  were  communicated  to  the 
Commission (in the form of initial communications) concerning a total amount of EUR 215.5 
million.  In  the  same  3-year  period,  the  Commission  assessed  422  write-off  reports  in  total 
(including  new  reports).  In  the  case  of  227  of  these  422  reports  (concerning  EUR 309.7 
million), the Commission considered that the TOR amounts proved irrecoverable for reasons 
attributable to the Member State concerned. In the case of 42 reports (concerning EUR 50.6 
million), the Commission agreed that the loss of TOR could not be attributed to the Member 
State. With regard to 148 reports (concerning EUR 178.9 million), the Commission requested 
additional information to complete its assessment. The Commission considered the remaining 
5 reports (concerning EUR 1.7 million) incorrectly reported as write-offs. 

5.2.  Treatment of errors in the establishment of customs debts leading to a loss of TOR 

The Commission follows up on the identified administrative errors committed by the Member 
States to the detriment of the EU’s financial interests (including: (i) cases identified during on-
the-spot inspections, (ii) national repayment or remission decisions due to administrative errors, 
(iii)  rejected  written-off  irrecoverable  amounts  below  EUR 100 000).  In  principle,  the 
Commission issues recovery orders to correct the errors detected in the Member States which 
pay the amounts due. In the period 2022-2024, the TOR control activities led to the collection 
of EUR 260 million in respect of recovery orders for TOR, and EUR 209 million in belated 
interest, in addition to amounts collected for undervalued textiles and footwear (point 3.3) and 
solar panels (point 3.4). 

5.3.  OWNRES database 

Pursuant to Article 5(1) of Regulation (EU, Euratom) 2021/76820, Member States must send 
the Commission information on cases of fraud and irregularities involving entitlements of more 
than EUR 10 000. This information is reported via the OWNRES database, which is managed 
and maintained by the Commission. 

OWNRES provides the Commission with information necessary for monitoring the recovery 
of funds and for preparing its on-the-spot inspections and desk audit reviews. It is also used by 
OLAF for various analyses and for monitoring the follow-up to its financial recommendations 
resulting from OLAF’s own investigations. The data reported in OWNRES is assessed in detail 
in the annual reports from the Commission to the European Parliament and the Council on the 
protection of the European Union’s financial interests – Fight against fraud (PIF) and in the 
annual Customs Union Performance report (CUP). 

20 Council Regulation (EU, Euratom) No 608/2014 was repealed by Council Regulation (EU, Euratom) 2021/768 on 
31 December 2020 

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By the end of 2024, the OWNRES database contained 137 87121 cases of fraud or irregularity 
(either ‘open’ or ‘closed’) compared with 121 199 cases at the beginning of 2022. This is an 
increase of around 13.8%, or 16 672 new cases reported over the three-year period 2022-2024. 

As part of the ACOR meetings held twice a year during the period 2022-2024, the Commission 
presented measures to improve the security of the OWNRES application, preparing Member 
States for the implementation of two-factor authentication. Furthermore, in 2022 and 2023 the 
Commission further improved OWNRES by: (i) adding new fields; (ii) setting reminders to 
keep the information in the existing reports up to date; (iii) improving the quality and the level 
of detail  of reporting; and  (iv) refining the results of queries  run by all stakeholders on the 
database. In 2023 and 2024, the Commission provided additional guidance on improving the 
quality of reporting. 

5.4.  Amendment to the Making Available Regulation 

Regulation  (EU,  Euratom)  609/2014  (the  Making  Available  Regulation  –  MAR)  is  the 
foundation of the legal framework for managing own resources, ensuring timely payment by 
Member States of the amounts due to the EU budget. 

To  further  improve  this  framework,  in  2021  the  Commission  proposed  a  comprehensive 
amendment to that Regulation. The proposal drew from the feedback from the TOR inspection 
work and addressed procedural concerns of Member States, while safeguarding the protection 
of the financial interest of the EU and ensuring a fair and balanced revenue framework. 

Following  extensive  exchanges  with  Member  States,  Regulation (EU,  Euratom)  2022/615 
amending  the  MAR  entered  into  force  in  May  2022.  The  amendments  included  the:  (i) 
broadening  the  capping  on  late  payment  interest;  and  (ii)  introducing  a  ‘grace  period’, 
according to which the accumulation of late payment interest is stopped for five years where 
the amount due has been established, entered in a timely manner in the separate account and 
kept  correctly in  the separate  account  (Article 12(1)). Furthermore, Member States are now 
released from the obligation to make the amounts available where belated entry in the separate 
account had no influence on the irrecoverability of the amount (Article 13(2)). Furthermore, 
the amendment formalised the procedure for making payments under reservation (Article 13a) 
and the review procedure (Article 13b). 

5.5 European Public Prosecutor’s Office (EPPO) 

During the reporting period, the Commission and the EPPO collaborated closely in a series of 
technical  exchanges  to  provide  clarifications  for  Member  States  on  both:  (i)  the  deferral  of 
notification of customs debts in order not to prejudice criminal investigations by the EPPO; 
and (ii) the financial responsibility for non-recovery. These clarifications were communicated 
to the Member States during the ACOR meeting in December 2024. Furthermore, with a view 
to  informing  the  Member  States  on  their  obligations  towards  the  EPPO,  the  Commission 

21 This figure includes cases reported by the UK in accordance with Article 136(2)(c) and (f) of the Withdrawal Agreement. 

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invited the EPPO to participate in the ACOR meetings  in December 2023 (when the EPPO 
gave a presentation of its tasks to the ACOR members) and July 2024. 

6. 

CONCLUSION 

The results for the period 2022 to 2024 show that the Commission’s inspections of TOR – and 
the  systematic  follow-up  measures  addressing  the  shortcomings  identified  –  continue  to  be 
indispensable  and  efficient  means  of:  (i)  ensuring  the  recovery  of TOR;  (ii)  improving  the 
regulatory  framework  for  own  resources;  and  (iii)  providing  reassurance  that  the  financial 
interests of the EU are adequately protected. This general positive impact was also confirmed 
by the annual discharge procedure, without any new recommendations having been issued for 
the Commission concerning TOR-related issues during 2022-2024. 

Inspections remain a key tool to harmonise and increase compliance with the relevant EU rules. 
Their financial impact is significant, as illustrated by the final net amount made available to 
the EU budget (including reservations lifted) of more than EUR 4 billion in 2022-2024. The 
inspections provide a significant incentive for Member States to make full amounts of TOR 
available to the EU budget in a timely manner. In addition, inspections help to ensure the correct 
application of the customs and accounting rules and thus help further protect the EU’s financial 
interests  by  providing  a  powerful  mechanism  for  counteracting  and  preventing  damaging 
distortions of competition in the single market. 

Current trends in international trade, in particular e-commerce, represent new challenges for 
the future. These challenges will require new appropriate tools and an even closer collaboration 
between the Commission and Member States, in order to coordinate risk-based customs checks 
and ensure effective collection of customs duties. 

To that end, in May 2023 the Commission proposed an ambitious reform of the Customs Union 
whose objective is to strengthen and modernise the mechanisms currently in place. 

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