The European Commission’s Proposal for a Modernised Union Customs Code: A Brief Introduction

Abstract

The European Union (EU) Customs Union has existed since 1968, but to this day it is not fully harmonised. Although customs law is Union law, there are 27 different national customs administrations, resulting in the customs legislation not being uniformly applied. To remedy this, the European Commission has proposed a comprehensive customs reform, the Modernised Union Customs Code (MUCC), a draft of which was presented by the Commission on 17 May 2023 (COM (2023)258 final). The following innovations are worth highlighting: • establishing the new European Customs Authority to pool expertise and competence and support national customs authorities • establishing a Union-wide Customs Data Hub to ensure the monitoring of the movement of goods, including the supply chain, on the one hand, but at the same time allowing for the simplification of procedures • an independent legal regime for e-commerce: platform operators in e-commerce will become importers and customs debtors (‘deemed importers’) in the future. This is intended to reduce compliance costs and at the same time improve Union-wide risk analysis • the new ‘Trust and Check Trader (TCT)’ (which will be alongside the Authorized Economic Operator [AEO] until the TCT permanently replaces it), will communicate electronically via the Customs Data Hub with Union-wide effect. TCTs can benefit from further facilitations, such as performing certain controls themselves. In return, complete electronic monitoring of the TCT’s supply chain must be always ensured through real time access to the company’s internal data. The reform should be implemented within the next 10–15 years. The reform is to be welcomed. However, there are still pitfalls hidden in the details. The standardisation of IT systems is necessary for Union-wide centralised customs clearance. Better risk analysis can be performed on a Union-wide data platform, both to protect the EU’s financial interests and to enforce import and export restrictions to protect the Union and its citizens. An EU customs authority can reduce divergent administrative practices across member states through governance and support. The further development of the AEO, the TCT, can establish better cooperation between administration and business, and the ability of companies to perform certain controls and release the goods themselves can speed up customs procedures. Harmonised sanctions for misconduct by economic operators will lead to a level playing field. Much will depend on the concretising legal acts that are now being drafted and discussed.