Proposal for EU Customs Reform

Ekaterina Rassadkina
Senior Manager, Customs & International Trade, PwC Switzerland

Camille Diane Sophie Rousseliere
Associate Customs & International Trade, PwC Switzerland

On May 17th, 2023, the European Commission put forward proposals for what it considers to be «the most ambitious and comprehensive reform of the EU Customs Union since its establishment in 1968». Its aim is to massively simplify customs processes for business, and at the same time respond to the current pressures EU Customs faces, like increases in trade volumes (especially in e-commerce), a fast-growing number of EU standards needing to be checked at the border and shifting geopolitical realities and crises.

The key elements

The key elements of this proposal are threefold:

Creation of an EU Customs Data Hub: to centralize information on a single online environment, thereby providing authorities with a 360-degree overview of supply chains and the movement of goods, while simplifying processes for businesses
Creation of an EU Customs Authority: to act on the real-time data provided in the EU Customs Data Hub with the aim to prioritise risks more efficiently and coordinate their checks and inspections using artificial intelligence and data monitoring
Rethinking the approach to e-commerce: to shift the responsibility of paying customs duties and VAT away from the private consumer to the online e-commerce platforms, abolishing the EUR 150 exemption for parcels entering the EU, and simplifying the customs duty calculation

What does this mean for your business?

In general, the envisaged changes will help to centralize information, harmonize customs controls, and facilitate trade throughout the EU.

Businesses will need to familiarize themselves with the EU Customs Data Hub, which will be the portal through which information will be exchanged between traders and customs authorities. E-commerce businesses, in particular, will also have to adapt to increased responsibilities when it comes to paying customs duties and VAT.

New solutions!

How can we help?

The proposal will mean a profound redesign of the current EU customs landscape which will undoubtedly bring forth a new set of challenges.

It cannot yet be determined how and to which extent the proposed changes will actually be implemented and how this will affect businesses operating in the EU. At this time, only a proposal has been released and will still need to undergo discussion in the EU-parliament and EU-council. No changes are planned until at least 2028.

We will continue to monitor the progression and will provide updates once further developments become known.

As a reminder, Swiss companies who wish to import into the EU but are not registered in the EU require an indirect representative in the EU. Please don’t hesitate to contact us to get more details about available options to make imports into the EU.

New solutions!