On the proposal for a regulation of the European Parliament and of the Council on Establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013

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SHORT JUSTIFICATION

The EU customs union is the basis and the guardian of the EU single market, allowing goods to move freely within the Union in compliances with ambitious legislation, setting environmental, security, social and digital standards that shape the way businesses operate within and beyond the single market. In 2022, EUR 25 billion in customs duties were transferred to the EU budget, representing about 10 % of the EU’s total revenue that year.

Customs authorities are increasingly burdened with an ever-growing range of tasks stemming from the above mentioned very ambitious legislation. As a result, customs authorities are today squeezed between increasing tasks and complexity on the one hand, and a sharp increase of low value shipments in e-commerce on the other.

The proposal of the Commission aims at strengthening the capacity of customs to supervise and control which goods enter and leave the customs union.

Customs would take a new strategic approach, driven by data analysis of supply chain information, to have targeted and coordinated customs action. In a new partnership with trade operators, the administrative burden would be reduced and customs processes streamlined. A new EU Customs Data Hub would facilitate the exchange and combination of information in a single central environment. A new EU Customs Authority (EUCA) would run a central risk analysis and supports national administrations, leading to coordinated customs action. Finally, the proposal would provide for an effective, risk-based intervention by public authorities and contribute sthrengthen the Union budget, through traditional own resources.

Your Rapporteur welcomes the overarching aims of the proposal. His draft opinion focuses on areas where the Committee on Budgets can add value in particular the EUCA and the necessary monitoring of the financial consequences of the proposal on the EU and Member States’ budgets. The opinion also draws the consequences of the introduction of the common approach to administrative penalties through this Regulation by making explicit the possibility to capture the proceeds of these penalties into a future own resources Decision.

Budgetary impact and financial provisions

The EU Customs Authority (EUCA):

The costs of EUR 58 million for the EUCA and the development of the EU Customs Data Hub in the first two years will be financed under the Customs Programme 2021-2027 of which EUR 3 million for the EUCA and EUR 55 million for the Hub.

Post 2027 the total costs of the reform for the EU budget are estimated at EUR 1.855 billion. This covers the cost of the tasks entrusted upon the EUCA (EUR 280,5 million) as well as the EU Customs Data Hub (EUR 1 574.5 million of which EUR 1 295 million would be outsourced to the EUCA).

Your Rapporteur introduces a set of amendments in recitals and Title XII of the proposal:

a) to oppose the Commission’s intention to fund more than 82% of the budget of the EUCA through contribution agreements. Instead of being financed from contribution agreements set in the work programme of the Customs programme decided under the comitology procedure, it will be funded from the EU contribution decided within the frame of the annual budgatry procedure.

b) to emphasise the need for the agency to be resourced in a manner commensurate with its tasks and responsibilities.

The consequences on the collection costs of customs duties:

According to the Commission Impact Assessment, the centralisation of functions in the EUCA would result in significant savings for Member States. The assessment estimated these could start in the region of EUR 194 million and rise over a 15 year window to around EUR 2.3 billion annually.

For recollection, in the period 2021-2027, Member States will retain 25% of the collected customs duties.

In view of the potential savings for the Member States resulting from the estbablishment of the EUCA financed from the EU budget, your rapporteur believes that a in depth monitoring and regularly updated forecast of the costs of the proposal both on the EU and the Member States budgets is necessary. The Rapporteur suggests introducing an amendment accordingly in Title XV.

Penalties:

Your rapporteur is of the opinion that any public revenue generated by the implementation of Union policies or the enforcement of Union regulations should, by default and in order to mutualise the benefits, accrue to the Union budget, as an own resource or as other revenue.

The Commission proposal introduces a common approach to administrative penalties applied in the frame of the Customs Union. You rapporteur suggests highlighting under Title XIV that the Regulation should not prevent from capturing these penalties within a future decision on own resources alongside with customs duties.

Governance, parliamentary scrutiny and evaluation

Your Rapporteur also introduces a number of amendments to ensure that all the provisions comply fully with the principles in the Common Approach.

This includes removing the Commission’s veto right over administrative and budgetary decisions since autonomy in budgetary and administrative decision-making is key for the Agency’s effectiveness.

AMENDMENTS

The Committee on Budgets calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to take the following into account:

Amendment 1

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) In order to ensure a uniform level of digitalisation and to create a level playing field for economic operators in all Member States, an EU Customs Data Hub should be established as a set of centralised, secure and cyber-resilient electronic services and systems for customs purposes. The EU Customs Data Hub should ensure the quality, integrity, traceability and non-repudiation of data processed therein, so neither sender nor recipient can later dispute the existence of the exchange of data. The EU Customs Data Hub and should comply with the relevant regulations for the processing of personal data and cybersecurity. The Commission and the Member States should jointly design the EU Customs Data Hub. The Commission should also be tasked with governing, implementing and maintaining the EU Customs Data Hub, which may delegate to another Union body.

(18) In order to ensure a uniform level of digitalisation and to create a level playing field for economic operators in all Member States, an EU Customs Data Hub should be established as a set of centralised, secure and cyber-resilient electronic services and systems for customs purposes. The EU Customs Data Hub should ensure the quality, integrity, traceability and non-repudiation of data processed therein, so neither sender nor recipient can later dispute the existence of the exchange of data. The EU Customs Data Hub should comply with the relevant regulations for the processing of personal data and cybersecurity. The Commission and the Member States should jointly design the EU Customs Data Hub. The EU Customs Authority should be tasked with governing, implementing and maintaining the EU Customs Data Hub.

Or. en

Amendment 2

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission

Amendment

(18a) Member States retain 25% of the collected customs duties with the intention to cover collection costs and to serve as an incentive to ensure a diligent collection of the amounts due. Such retention rate has been constantly increasing over the years from 10% to 20% and up to 25% under the current MFF without being justified by an increase in customs equipment, staff and information costs in the Member States. This constitutes a high and unjustified loss of Own Resources for the Union Budget. The roll out of the EU Customs Data Hub will bring further synergies and savings for the Member States thanks to the economy of scales resulting from the pooling of IT infrastructure at EU level while the the costs will be borne by the EU budget. In this context, the costs incurred by the EU budget and the Member States for the collection of customs duties should be closely monitored to provide a sound and factual basis to draw appropriate consequences on the retention rate.

Or. en

Amendment 3

Proposal for a regulation

Recital 56

Text proposed by the Commission

Amendment

(56) The Member States and the Commission should be represented on a Management Board, in order to ensure the effective functioning of the EU Customs Authority. The composition of the Management Board, including the selection of its Chairperson and Deputy-Chairperson, should respect the principles of gender balance, experience and qualification. Given the Union’s exclusive competence on the customs union, and the close link between customs and other policy fields, it is appropriate that its chairperson is elected from among those Commission representatives. In view of the effective and efficient functioning of the EU Customs Authority, the Management Board should, in particular, adopt a Single Programming Document including annual and multiannual programming, carry out its functions relating to the Authority’s budget, adopt the financial rules applicable to the Authority, appoint an Executive Director, and establish procedures for taking decisions relating to the operational tasks of the Authority by the Executive Director. The Management Board should be assisted by an Executive Board.

(56) The Member States the Commission and the Parliament should be represented on a Management Board, in order to ensure the effective functioning of the EU Customs Authority. The composition of the Management Board, including the selection of its Chairperson and Deputy-Chairperson, should respect the principles of gender balance, experience and qualification. Given the Union’s exclusive competence on the customs union, and the close link between customs and other policy fields, it is appropriate that its chairperson is elected from among those Commission representatives. In view of the effective and efficient functioning of the EU Customs Authority, the Management Board should, in particular, adopt a Single Programming Document including annual and multiannual programming, carry out its functions relating to the Authority’s budget, adopt the financial rules applicable to the Authority, appoint an Executive Director, and establish procedures for taking decisions relating to the operational tasks of the Authority by the Executive Director. The Management Board should be assisted by an Executive Board.

Or. en

Amendment 4

Proposal for a regulation

Recital 57

Text proposed by the Commission

Amendment

(57) To guarantee its effective functioning, the EU Customs Authority should be granted an autonomous budget, with revenue coming from the general budget of the Union and any voluntary financial contribution from the Member States. In exceptional and duly justified circumstances, the EU Customs Authority should also be in the position to receive additional revenues through contribution agreements or grant agreements, and charges for publications and any other service provided by the EU Customs Authority.

(57) The Agency should be provided with the necessary human and financial resources to fulfil the objectives, tasks and responsibilities assigned to it under this regulation or by any other relevant Union legal acts. To guarantee its effective functioning, the EU Customs Authority should be granted an autonomous budget, with revenue coming from the general budget of the Union. In exceptional and duly justified circumstances, the EU Customs Authority should also be in the position to receive additional revenues through contribution agreements or grant agreements, and charges for publications and any other service provided by the EU Customs Authority.

Or. en

Amendment 5

Proposal for a regulation

Recital 64a (new)

Text proposed by the Commission

Amendment

(64a) The financial proceeds resulting from the enforcement of Union regulations may accrue to the Union budget, as an own resource or as other revenue. The minimum harmonisation of non-criminal sanctions as well as the increasing role of the EU in the enforcement of the Union Customs Code should be considered in this context. The possibility to use the proceeds of the sanctions as own resources alongisde customs duties should be explored.

Or. en

Amendment 6

Proposal for a regulation

Article 29 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall develop, implement and maintain the EU Customs Data Hub, including making publicly available the technical specifications to process data within it, and shall establish a data quality framework.

3. The Commission shall develop, the EU Customs Data Hub, including making publicly available the technical specifications to process data within it, and shall establish a data quality framework. The EU Customs Authority shall operate and maintain it.

Or. en

Amendment 7

Proposal for a regulation

Article 207 – paragraph 1

Text proposed by the Commission

Amendment

1. The EU Customs Authority shall contribute to achieving the mission of customs authorities as set out in Article 2.

deleted

Or. en

Amendment 8

Proposal for a regulation

Article 208 – paragraph -1

Text proposed by the Commission

Amendment

-1. The EU Customs Authority shall operate and maintain the information technology systems used for the implementation of the Customs Union, such as the EU Customs Data Hub, as laid down in Title III.

Or. en

Amendment 9

Proposal for a regulation

Article 208 – paragraph 3

Text proposed by the Commission

Amendment

3. The EU Customs Authority shall perform capacity building activities and provide operational support and coordination to customs authorities. In particular, it shall:

3. The EU Customs Authority shall perform capacity building activities and provide operational support and coordination to customs authorities and the Commission. In particular, it shall:

Or. en

Amendment 10

Proposal for a regulation

Article 208 – paragraph 3 – point i a (new)

Text proposed by the Commission

Amendment

(ia) providing support to the Commission for developing and implementing an operational strategy for activities relating to the allocation, funding and procurement of control equipment, including the assessment of needs, joint procurement and co-sharing of equipment.

Or. en

Amendment 11

Proposal for a regulation

Article 209

Text proposed by the Commission

Amendment

Article 209

deleted

Other tasks

deleted

The Commission may entrust to the EU Customs Authority the following tasks for the implementation of the customs-related funding programmes:

deleted

(a) activities related to the development, operation and maintenance of the information technology systems used for the implementation of the Customs Union, such as the EU Customs Data Hub, as laid down in Title III;

deleted

(b) providing support to the Commission for developing and implementing an operational strategy for activities relating to the allocation, funding and procurement of control equipment, including the assessment of needs, joint procurement and co-sharing of equipment.

deleted

Or. en

Amendment 12

Proposal for a regulation

Article 212 – paragraph 1

Text proposed by the Commission

Amendment

1. The Management Board shall be composed of one representative from each Member State and two representatives of the Commission, all with voting rights.

1. The Management Board shall be composed of one representative from each Member State, two representatives of the Commission and one member designated by the European Parliament, all with voting rights.

Or. en

Amendment 13

Proposal for a regulation

Article 212 – paragraph 2

Text proposed by the Commission

Amendment

2. The Management Board shall also include one member designated by the European Parliament, without the right to vote.

deleted

Or. en

Amendment 14

Proposal for a regulation

Article 216 – paragraph 2

Text proposed by the Commission

Amendment

2. The decision referred to in Article 215(1), points (b), (c), (e), (f), (j), (m), (n), (o) and (s) may only be taken if the representatives of the Commission cast a positive vote. For the purposes of taking the decision referred to in Article 215(1), point (s), the consent of the representatives of the Commission shall only be required on the elements of the decision not related to the annual and multi-annual work programme of the EU Customs Authority.

delete

Or. en

Amendment 15

Proposal for a regulation

Article 217 – paragraph 5

Text proposed by the Commission

Amendment

5. The Executive Board shall be composed of the two representatives of the Commission to the Management Board and three other members appointed by the Management Board from among its members with the right to vote. The Chairperson of the Management Board shall also be the Chairperson of the Executive Board. The Executive Director shall take part in the meetings of the Executive Board, but shall not have the right to vote. The decisions of the Executive Board shall be taken by simple majority. Decisions with respect to paragraph (2), point (b) may only be taken if one representative of the Commission casts a positive vote.

5. The Executive Board shall be composed of the two representatives of the Commission to the Management Board and three other members appointed by the Management Board from among its members with the right to vote. The Chairperson of the Management Board shall also be the Chairperson of the Executive Board. The Executive Director shall take part in the meetings of the Executive Board, but shall not have the right to vote. The decisions of the Executive Board shall be taken by simple majority.

Or. en

Amendment 16

Proposal for a regulation

Article 218 – paragraph 1

Text proposed by the Commission

Amendment

1. The Executive Director shall be engaged as a temporary agent of the EU Customs Authority in accordance with Article 2(a) of the Conditions of Employment of other servants.

The Executive Director shall be appointed by the Management Board on grounds of merit and documented administrative and managerial skills, as well as relevant competence and experience, from a list of at least three candidates proposed by the Commission, following an open and transparent selection procedure.

For the purpose of concluding the contract of the Executive Director, the EU Customs Authority shall be represented by the Chairperson of the Management Board.

1. The Executive Director shall be engaged as a temporary agent of the EU Customs Authority in accordance with Article 2(a) of the Conditions of Employment of other servants.

The Executive Director shall be appointed by the Management Board on grounds of merit and documented administrative and managerial skills, as well as relevant competence and experience, from a list of at least three candidates proposed by the Commission, following an open and transparent selection procedure and after having obtained the consent of the European Parliament. The Commission shall ensure gender balance when drawing up the list of candidates.

For the purpose of concluding the contract of the Executive Director, the EU Customs Authority shall be represented by the Chairperson of the Management Board.

Or. en

Amendment 17

Proposal for a regulation

Article 254 – paragraph 1

Text proposed by the Commission

Amendment

Where sanctions to customs infringements referred to in Article 252 are applied, they shall take at least one or several of the following forms, while ensuring that sanctions are effective, proportionate and dissuasive and taking into account extenuating and mitigating circumstances referred to in Article 247 and aggravating circumstances referred to in Article 248

1. Where sanctions to customs infringements referred to in Article 252 are applied, they shall take at least one or several of the following forms, while ensuring that sanctions are effective, proportionate and dissuasive and taking into account extenuating and mitigating circumstances referred to in Article 247 and aggravating circumstances referred to in Article 248

Or. en

Amendment 18

Proposal for a regulation

Article 254 – paragraph 2 (new)

Text proposed by the Commission

Amendment

2. Member States shall decide on the use of the proceeds resulting from the enforcement of non-criminal sanctions except for when established as an own resource in accordance with Article 311(3) TFEU.

Or. en

Amendment 19

Proposal for a regulation

Article 256 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall verify the report and transmit it afterwards to the Member States for information.

4. The Commission shall verify the report and transmit it afterwards to the Member States and to the European Parliament for information.

Or. en

Amendment 20

Proposal for a regulation

Article 258 – paragraph 1 c (new)

Text proposed by the Commission

Amendment

(c) an overview of the costs incurred by the Union on the one hand and the Member States on the other hand for the implementation of the Regulation including in comparison with the costs incurred at the date of entry into force of the Regulation.

Or. en