On 17 May 2023 the European Commission set out proposals for a reform of the EU Customs Union. The proposals are a response to the large increase in the volume of trade in recent years, the growth in e-commerce and the need to enforce EU trading standards more efficiently.

The aim is to simplify customs procedures by ensuring that digital processes are used to streamline the process and reduce the burden imposed by traditional customs declarations. The customs authorities will be able to use appropriate tools for risk assessment and to focus on preventing illegal or dangerous imports.

The new EU Customs Authority will have the task of supervising the replacement of the customs IT infrastructure and putting in place an EU Customs Data Hub. The introduction of the improved risk management approach and focused customs checks will be supervised by the new authority. This will reduce the time required to complete import processes by ensuring that there is one single EU interface and by facilitating the re-use of data. Businesses bringing goods into the EU will then log the relevant information about their products and supply chains into the Data Hub. The data acquired from businesses will provide the customs authorities with an overview of the supply chains and movement of goods.

The most trusted traders (Trust and Check traders) will be able to bring their goods into circulation in the EU without customs intervention. This Trust & Check category therefore strengthens the current Authorised Economic Operators (AEO) programme. The new procedures will allow the import of goods with minimum intervention but without any compromise in relation to safety, security or anti-fraud requirements. The EU member states can have access to real-time data allowing them to pool information and deal with risks more effectively.

The timetable for the implementation of the proposals is that the Data Hub would be open for e-commerce consignments in 2028; and would then open for other importers on a voluntary basis in 2032. The Trust & Check traders would be able to clear their imports with the customs authorities of the Member State where they are based, regardless of the point of entry of the goods into the EU. In 2035 the procedures would be reviewed to assess the possibility of extending them to all traders after 2038 when the Data Hub becomes mandatory.

Online platforms will have an important role in ensuring that goods sold online into the EU are in compliance with customs obligations. The online platforms will be responsible for ensuring that customs duties and VAT are paid when the goods are purchased, so consumers will not need to pay further charges when they receive the delivery. The system will ensure that the goods are safe and comply with EU environmental and safety standards.

The current threshold under which goods valued at less than EUR 150 are exempt from customs duty is to be abolished as it has been misused by fraudsters who undervalue parcels entering the EU. The calculation of customs duty for the most common low-value goods will be simplified, reducing the customs duty categories down to four. This will help online platforms and customs authorities alike to better manage the workload and will remove opportunities for fraud.

The Commission proposals are next to be considered by the European Parliament and the Council of the European Union. There will be advisory input from the European Economic and Social Committee.