Changes from report parliamentary committee draft to report parliamentary committee draft

AddedSHORT JUSTIFICATION

RemovedThe aim is to repeal the Customs Single Window Regulation and add it to the Union Customs Code, in order to create one comprehensive customs framework as part of the customs reform.

AddedThe Council position at first reading reflects the agreement reached between the European Parliament and the Council in interinstitutional negotiations to be concluded at early second reading stage.

RemovedRecital 3: (3) It is appropriate that customs legislation takes account of the rapid development of global trade patterns, technology, business models and the needs of stakeholders, including businesses, consumers and citizens. Therefore, a great number of amendments are required to be made to Regulation (EU) No 952/2013. In the interests of clarity, that Regulation should be repealed and replaced.

RemovedRecital 15: (15) Economic operators meeting certain criteria and conditions to be considered compliant and trustworthy traders by customs authorities can be granted the status of AEO and thereby benefit from facilitations in customs processes. While ensuring that the traders dealing with most of Union trade are trustworthy, the AEO scheme suffers from certain weaknesses highlighted in the evaluation of Regulation (EU) No 952/2013 and in the findings of the European Court of Auditors. To deal with those concerns, in particular about the divergent national practices and challenges regarding AEO compliance monitoring, the rules should be amended to introduce the customs authorities’ obligation to monitor compliance at least every 3 years. This obligation should also be monitored by the new EU Customs Authority.

RemovedRecital 16: (16) The changes in the customs processes and the way of operating the customs authorities requires a new partnership with economic operators, that is the Trust and Check traders scheme. The criteria and conditions to become a Trust and Check trader should build on the AEO criteria but should also ensure that the trader is considered transparent for the customs authorities. It is therefore appropriate to require Trust and Check operators to grant, , the customs authorities access to their electronic systems keeping record of their compliance and the movement of their goods, provided that such access is proportionate and strictly necessary. The transparency should be accompanied by certain benefits, notably the possibility to release the goods on behalf of customs without the necessity for their active intervention, except where a pre-release approval is required by other legislation applied by the customs authorities and to defer the payment of the customs debt. As this mode of working should progressively replace the one based on customs declarations, it is appropriate to establish the customs authorities’ obligation to reassess the existing authorisations for AEO for customs simplifications until the end of the transition period.

RemovedRecital 17 a (new): (17a) It is also important to recognise the specific challenges for small and micro enterprises as defined in Commission Recommendation 2003/361/EC in fulfilling customs requirements and how this can be facilitated by direct and indirect representation. This is especially true where a small or micro enterprise does not hold the status of a Trust and Check trader. They should continue to be able to benefit from having indirect representation. The Commission and the EU Customs Authority should evaluate how this arrangement is working based on information received from relevant authorities. The Commission should present this evaluation in the form of a report to the European Parliament and the Council. On the basis of that report, the Commission should decide whether to propose a legislative solution for a specific regime to better determine the relationship between small and micro enterprises and customs representatives with a view to facilitating trade and ensuring a fair balance of responsibilities.

RemovedRecital 17 b (new): (17b) In order to establish a common framework of the customs union, it is necessary for the European Union Single Window Environment for Customs (‘EU Single Window Environment for Customs’) to be integrated in the Union Customs Code . Therefore, Regulation (EU) 2022/2399 should be repealed and the EU Single Window Environment for Customs is added to this Regulation.

RemovedRecital 17 c (new): (17c) To achieve a fully digital environment and an efficient goods clearance process for all parties involved in international trade, it is necessary to establish common rules for a harmonised and integrated EU Single Window Environment for Customs. That environment should include a set of fully integrated electronic services delivered at Union and national level to facilitate information sharing and digital cooperation between customs authorities and partner competent authorities and to streamline goods clearance processes for economic operators. The EU Single Window Environment for Customs should be developed taking account of the possibilities for trustworthy identification and authentication offered by Regulation (EU) No 910/2014 of European Parliament and of the Council1a and the ‘once-only’ principle, where appropriate, as reiterated in Regulation (EU) 2018/1724 of the European Parliament and of the Council. To implement the EU Single Window Environment for Customs, it is necessary to establish, on the basis of the pilot project, a certificates exchange system, namely the electronic European Union Customs Single Window Certificates Exchange System (EU CSW-CERTEX), that interconnects national single window environments for customs and Union non-customs systems managing specific non-customs formalities. It is also necessary to harmonise national single window environments for customs, integrate those environments into the EU Single Window Environment for Customs, and est…

RemovedRecital 17 d (new): (17d) The EU Single Window Environment for Customs should be aligned to and made as interoperable as possible with other existing or future customs-related systems, such as centralised clearance under this Regulation. Where relevant, synergies between the European Maritime Single Window environment established by Regulation (EU) 2019/1239 of the European Parliament and of the Council1a and the EU Single Window Environment for Customs should be sought. / ------------------------------------- / 1a Regulation (EU) 2019/1239 of the European Parliament and of the Council of 20 June 2019 establishing a European Maritime Single Window environment and repealing Directive 2010/65/EU (OJ L 198, 25.7.2019, p. 64)

RemovedRecital 17 e (new): (17e) It is necessary for the EU Single Window Environment for Customs to integrate solutions that ensure a high level of cybersecurity in order, as far as possible, to prevent attacks that could disrupt the customs and non-customs systems, harm security of trade or inflict damage on the economy of the Union. The cybersecurity standards should be designed to evolve at the same pace as the regulatory requirements for network information security. In developing, operating and maintaining the EU Single Window Environment for Customs, the Commission and the Member States should follow appropriate guidelines issued by the European Union Agency for Cybersecurity (ENISA) regarding cybersecurity.

RemovedRecital 17 f (new): (17f) The exchange of digital information through EU CSW-CERTEX should cover Union non-customs formalities laid down in Union legislation other than customs legislation that customs authorities are entrusted to enforce. Union non-customs formalities comprise all operations which are to be carried out by a natural person, an economic operator or a partner competent authority for the international movement of goods, including the part of the movement between Member States, when required. Those formalities impose different obligations for the import, export or transit of certain goods, and their verification through customs controls is fundamental to the effective functioning of the EU Single Window Environment for Customs. EU CSW-CERTEX should cover digitalised formalities laid down in Union legislation and managed by partner competent authorities in electronic Union non-customs systems, storing the relevant information from all Member States required for goods clearance. It is therefore appropriate to identify the Union non-customs formalities and the respective Union non-customs systems that should be subject to digital cooperation through EU CSW-CERTEX. In particular, the definition of Union non-customs systems should be broad and should encompass the different situations and legal formulations in the Union legal acts that have enabled or will enable the creation and use of those systems. Moreover, it is also appropriate to specify the dates by which the specific Union non-c…

RemovedRecital 17 g (new): (17g) EU CSW-CERTEX should facilitate information exchange between the national single window environments for customs and Union non-customs systems. Accordingly, when an economic operator submits a customs declaration or re-export declaration, which requires Union non-customs formalities to have been fulfilled, it should be possible for customs authorities and partner competent authorities to automatically and effectively exchange and verify the information that is required for the customs clearance process. Improved digital cooperation and coordination between customs authorities and partner competent authorities should lead to more integrated, faster and simpler paperless processes for goods clearance and better enforcement of and compliance with Union non-customs formalities.

RemovedRecital 17 h (new): (17h) The Commission, in collaboration with the Member States, should develop, integrate and operate EU CSW-CERTEX, including the provision of appropriate training on its functioning and implementation to Member States. To provide appropriate, harmonised and standardised single window services at Union level for Union non-customs formalities, the Commission should connect each of the Union non-customs systems with EU CSW-CERTEX. Member States should be responsible for connecting their national single window environments for customs with EU CSW-CERTEX, assisted, where necessary, by the Commission.

RemovedRecital 18 a (new): (18a) Before the EU Customs Data Hub becomes fully operational, the Commission should have the option to plan and establish a pilot phase to test the functionalities that are relevant for the EU Customs Data Hub. Such a pilot phase should be voluntary for customs authorities, other authorities, and economic operators.

RemovedRecital 35: (35) The customs authorities responsible for the place of first entry of the goods should carry out a risk analysis of the available information on those goods and be entitled to take a wide range of mitigation measures if they detect a risk, including requesting controls before loading or upon arrival of the goods to the customs territory of the Union, by another customs authority or by other authorities. The carrier is generally in the best position to know when the goods have arrived so they should notify customs of such arrival, using where applicable the EU Maritime Single Window Environment pursuant to Regulation (EU) 2019/1239. However, to cater for the more complex supply chains and transport networks, other persons may be required to notify the arrival of the goods to the customs authorities for their risk analysis. In order to ensure that the customs authorities have advance cargo information on all goods brought to the customs territory of the Union, the carrier should be prevented from unloading goods for which there is no information, unless the customs authorities have requested the carrier to present the goods or there is an emergency situation requiring the unloading of the goods. By contrast, to smoothen the process of entry of goods for which the customs authorities have the appropriate advance cargo information, the carrier should not be required to present the goods to customs in all cases but only where the customs authorities so request or where other le…

RemovedRecital 38: (38) Once the customs authorities have the information necessary for the relevant procedure, based on risk analysis, they should decide whether to perform further controls on the goods, to release them, to refuse or suspend their release or to let the time pass so the goods are considered released. The customs authorities should do so in cooperation with other authorities, where necessary. Accordingly, the customs authorities should refuse the release of the goods where they have evidence that the goods do not comply with applicable legal requirements. Where the customs authorities need to consult other authorities to determine whether or not the goods comply, they should suspend the release at least until the consultation takes place. In these cases, the customs authorities’ subsequent decision on the goods should depend on the other authorities’ reply. To avoid blocking both traders and authorities in the cases in which concluding on compliance requires some time, the customs authorities should have the possibility to release the goods on the condition that the trader continues informing about the location of the goods for a maximum of 15 days. Finally, in order to provide legal certainty to the traders that have provided the information on time without obliging the customs authorities to react to every consignment, the goods that have not been selected for a control after 30 calendar days should be considered released.

RemovedReasonable period of time changed with 30 calendar days.

RemovedRecital 52: (52) A crisis management mechanism should be put in place to address potential crises in the customs union. The lack of such a mechanism at Union level was highlighted in the Customs Action Plan55 . A mechanism should therefore be established that involves the EU Customs Authority as a pivotal actor in preparing, coordinating and monitoring the implementation of the practical measures and arrangements that the Commission decides to put in place when a crisis occurs. The EU Customs Authority should maintain the crisis response readiness on a permanent basis during the whole duration of the crisis. The EU Customs Authority should report back to the Commission, the European Parliament and the Council on the implementation of the practical measures and arrangements.

RemovedRecital 53: (53) The existing governance framework of the customs union lacks a clear operational management structure and does not reflect the evolution of customs since its creation in 1968. Under Regulation (EU) No 952/2013, the activities related to the management of risks in trade flows, such as implementation and decisions on controls on the ground, are the responsibility of national customs authorities. Despite the cooperation between national customs administrations that has existed since the creation of the customs union and that has led to the exchange of best practices, expertise, and the development of common guidelines, it has not resulted in the development of a harmonised approach and operational framework. Currently, divergent practices exist in Member States that weaken the customs union. There is no central risk analysis capacity, no common view on risk prioritisation, limited coordinated customs action and controls, and no cooperation framework of various authorities serving the internal market. A central operational Union layer to pool expertise, resources and take decisions together should address such weaknesses in areas such as data management, risk management and training to make the customs union ‘act as one’. Therefore, it is appropriate that an EU Customs Authority is established. The creation of this new Authority is crucial to ensure the efficient and adequate functioning of the customs union, to centrally coordinate customs action and support the customs aut…

RemovedRecital 58: (58) To fulfil their mission, customs authorities cooperate closely and regularly with market surveillance authorities, sanitary and phytosanitary control authorities, law-enforcement bodies, border management authorities, environmental protection bodies, experts on cultural goods, and many other authorities in charge of sectoral policies. Considering the evolution of the internal market and the evolving role of customs, the increase in prohibitions and restrictions and e-commerce, it is necessary to structure and reinforce this cooperation at national, Union and international level. Instead of a cooperation focused on individual consignments or specific events along the supply chain, a structured cooperation framework between customs authorities and other authorities responsible for relevant policy areas should be established. Such cooperation framework should include the following aspects: the development of legislation and of policy needs in a specific area, the exchange and analysis of information, the building of overall cooperation strategy in the form of joint supervision strategies and, finally, cooperation on operational implementation, monitoring and controls. The Commission should also facilitate the application of part of the other legislation applied by the customs authorities by drawing a list of Union legislation imposing requirements on goods subject to customs controls aimed at protecting public interests such as human, animal or plants health and life, the c…

RemovedRecital 67 – indent 10: deleted

RemovedReasonable period of time changed by 30 calendar days. Therefore, a Delegated Act is not needed.

RemovedRecital 74: (74) From 1 January 2029, economic operators shall have the right to start using, on a voluntary basis, the capabilities of the EU Customs Data Hub. By 31 December 2032, the EU Customs Data Hub should be fully developed, and all economic operators shall use it. Trust and Check traders and deemed importers will be supervised by the Member State of their establishment. By derogation and subject to review, operators that are neither Trust and Check traders nor deemed importers will remain under the supervision of the customs authority of the Member State where the goods are physically located. By 31 December 2031, the Commission should evaluate the two supervision models, including as regards their effectiveness for detecting and preventing fraud. The evaluation should also consider indirect taxation aspects. Based on this evaluation, the Commission should be entitled to decide by delegated act whether the two models should continue or whether, in all cases, the customs authority responsible for the place of establishment of the trader should release the goods. The place of incurrence of customs debt should also be regulated in accordance with the determination of the responsible customs authority,

RemovedArticle 1 – paragraph 1 – subparagraph 2 a (new): This Regulation also establishes a European Union Single Window Environment for Customs (‘EU Single Window Environment for Customs’) that provides an integrated set of interoperable electronic services, at Union and national level through the European Union Customs Single Window Certificates Exchange System.

RemovedArticle 2 – paragraph 2 – point a: (a) ensuring the efficient and proper collection of customs duties and other charges;

RemovedArticle 2 – paragraph 2 – point d: (d) protecting the Union from unfair, non-compliant and illegal trade, including through a close monitoring of economic operators, sectors and supply chains and a minimum core of customs infringements and penalties;

RemovedArticle 2 – paragraph 2 – point e: (e) supporting all legitimate business activity, by maintaining a proper balance between customs controls and facilitation of legitimate trade and simplifying customs processes and procedures.

RemovedArticle 2 – paragraph 2 – point e a (new): (ea) promote cost-efficiency by avoiding duplication, and promoting effectiveness in customs processes as well as an efficient use of related resources at Union and national level;

RemovedArticle 2 – paragraph 2 – point e b (new): (eb) the gathering, analysis and exchange of relevant information to support evidence-based decision making;

RemovedArticle 2 – paragraph 2 – point e c (new): (ec) contribute to the improvement of the overall performance of the enforcement of Union legislation in other fields, such as those protecting citizens, residents and consumers´ safety and security, the environment and supply chains;

RemovedArticle 4 – paragraph 1: The Commission is empowered to adopt delegated acts in accordance with Article 261 supplementing and amending this Regulation by specifying the provisions of the customs legislation that apply to the trade in Union goods referred to in Article 1(4). Those acts may address particular circumstances pertaining to the trade in Union goods involving only one or more Member States.

RemovedArticle 5 – paragraph 1 – point 13: (13) ‘deemed importer’ means any person involved in the distance sales of goods to be imported from third countries into the customs territory of the Union, including who is authorised to use the special scheme laid down in Title XII, Chapter 6, Section 4 of Directive 2006/112/EC;

RemovedArticle 5 – paragraph 1 – point 57: (57) ‘customs debt’ means the obligation on a person to pay the amount of import or export duty and any other charges which apply to specific goods under the customs legislation in force;

RemovedArticle 5 – paragraph 1 – point 64: (64) ‘crisis’ means an exceptional, natural or man-made event of an extraordinary nature and scale that takes place inside or outside of the Union, that endangers the safety, the security, the health and life of the citizens, economic operators and personnel of customs authorities and that requires urgent measures as regards the entry, exit or transit of goods;

RemovedArticle 5 – paragraph 1 – point 64 a (new): (64a) ‘crisis response cell’ means a contact point within the EU Customs Authority that coordinates EU crises response efforts within the Customs Union;

RemovedArticle 5 – paragraph 1 – point 64 b (new): (64b) ‘small and micro enterprise’ means an economic operator as defined in Commission Recommendation 2003/361/EC;

RemovedArticle 5 – paragraph 1 – point 64 c (new): (64c) ‘other charges’ means any fees coming on top of custom duties, VAT, customs formalities fees and courier fees;

RemovedArticle 5 – paragraph 1 – point 64 d (new): (64d) ‘end-customer’ means a physical or moral person residing or established in the Union, to whom a product has been made available by a seller or a marketplace;

RemovedArticle 5 – paragraph 1 – point 64 e (new): (64e) ‘national single window environment for customs’ means a set of electronic services established by a Member State to enable information to be exchanged between the electronic systems of its customs authority, the partner competent authorities and economic operators;

RemovedArticle 5 – paragraph 1 – point 64 f (new): (64f) ‘partner competent authority’ means the Commission or any Member State authority , empowered to perform a designated function in relation to the fulfilment of the relevant Union non-customs formalities;

RemovedArticle 5 – paragraph 1 – point 64 g (new): (64g) ‘Union non-customs formality’ means all operations which must be carried out by an economic operator or by a partner competent authority for the international movement of goods, as laid down in Union law other than Union customs law;

RemovedArticle 5 – paragraph 1 – point 64 h (new): (64h) ‘supporting document’ means any required document issued by a partner competent authority or drawn up by an economic operator, or any required information provided by an economic operator, to certify that Union non-customs formalities have been fulfilled;

RemovedArticle 5 – paragraph 1 – point 64 i (new): (64i) ‘quantity management’ means the activity of monitoring and managing the quantity of goods authorised by partner competent authorities, in accordance with Union legislation other than customs legislation, based on the information provided by customs authorities;

RemovedArticle 5 – paragraph 1 – point 64 j (new): (64j) ‘Union non-customs system’ means any Union electronic system established by Union legal acts, used in order to achieve the objectives of Union law, or referred to in Union legal acts used to store information on the fulfilment of the Union non-customs formalities;

RemovedArticle 5 – paragraph 1 – point 64 k (new): (64k) ‘Economic Operator Registration and Identification number (EORI number)’ means ‘Economic Operator Registration and Identification number (EORI number)’ as defined in Article 1, point (18), of Commission Delegated Regulation (EU) 2015/2446 (14);

RemovedArticle 6 – paragraph 2 – subparagraph 1: Customs authorities shall, without delay and at the latest within 14 calendar days of receipt of the application for a decision, verify whether the conditions for the acceptance of that application are fulfilled.

Removed30 days for customs authorities to verify whether the conditions are fulfilled are too long.

RemovedArticle 6 – paragraph 2 – subparagraph 3: Where the customs authorities establish that the application does not contain all the information required, they shall ask the applicant to provide the relevant additional information within a reasonable time limit which shall not exceed 30 calendar days. Even where the customs authorities have requested additional information to the applicant, they shall decide whether the application is complete and can be accepted or whether it is incomplete and shall be refused in a period that shall not exceed 60 calendar days from the date of the first application. If the customs authorities do not expressly inform the applicant within that period whether the application is complete and has been accepted, the application shall be considered as accepted at the end of the 60 calendar days.

RemovedArticle 6 – paragraph 3 – subparagraph 1: Except where otherwise provided, the competent customs authority shall take a decision as referred to in paragraph 1 at the latest within 90 calendar days of the date of acceptance of the application and shall notify the applicant without delay.

RemovedWithin 90 days are sufficient for customs authorities to take a decision.

RemovedArticle 6 – paragraph 3 – subparagraph 4: Where the customs authorities fail to take a decision within the time-limits established in the first, second and third subparagraphs, the application shall be considered to be complete and accepted.

RemovedOtherwise, it would be unlawfully detrimental to the applicant and there could be a lack of responsibility of the customs authorities.

RemovedArticle 6 – paragraph 6 – subparagraph 2 – point f: deleted

RemovedAmbiguous, would give further room to the customs authorities to not inform the applicant of the decision.

RemovedArticle 6 – paragraph 8 – point g: deleted

RemovedAs point (f) of paragraph 6 is removed.

RemovedArticle 23 – paragraph 6: 6. The authorised economic operator referred to in paragraph 1 shall enjoy more facilitations than other economic operators in respect of customs controls according to the type of authorisation granted, including fewer physical and document-based controls. The status of authorised economic operator shall be taken into account favourably for customs risk management purposes. In duly justified cases, the customs authorities may give the authorised economic operator the possibility of providing information on the goods after their release.

RemovedArticle 24 – paragraph 2: 2. The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by laying down detailed arrangements for the application of the criteria referred to in paragraph 1.

RemovedFor the criteria granting the AEO status, EP would be more involved with delegated acts than with implementing acts.