Sittings · Document

DRAFT OPINION (COM(2023)0258 – C90175/2023 – 2023/0156(COD)) 2024-01-26

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

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

PA_Legam

SHORT JUSTIFICATION

The rapporteur welcomes the proposal for a regulation establishing the Union Customs Code and the European Union Customs Authority. Since its introduction more than ten years ago, the global economy and trade dynamics have changed substantially, including in what refers to fraud and the protection of the financial interests of the European Union. While some of the aspects that needed to be updated to ensure adequate customs control and effective oversight have been introduced, others are proposed in this draft report.

The rapporteur also welcomes the work carried out by the European Court of Auditors in helping the other EU institutions and the Member States better manage and supervise the use of EU funds, improving public accountability in the EU and keeping EU policymakers informed, including its fight against fraud. This is shown by a series of Special Reports on customs-related issues, as well as substantive analysis in its annual reports on the implementation of the EU budget. In this vein, the rapporteur specifically recalls Special Report 13/2023 on Authorised Economic Operators and Special Report 4/2021 on Customs Controls, which provide further evidence of shortcomings in these areas. Similarly, the rapporteur warmly welcomes the 2022 Report by the Wise Persons Group on the Reform of the EU Customs Union and the Study requested by the CONT Committee in 2019 about the protection of EU financial interests on customs and VAT, which focused on cooperation between national tax and customs authorities to prevent fraud. This entire body of knowledge, discussed in detail in CONT through different meetings and workshops, also demonstrates the Committee's deep interest and expertise in this matter.

In particular, the rapporteur's draft report focuses on three main aspects: First, it proposes improvements to the risk assessment and control framework in customs matters, including codifying issues long requested by the European Parliament such as calculating the customs gap. Second, it proposes enhancements to the compliance monitoring and related procedures of the Authorised Economic Operator mechanism, developing oversight and defining unclear concepts like serious or repeated infringements. Third, it further develops the governance framework of the new Customs Agency and proposes new ways to measure performance in customs procedures.

In conclusion, the rapporteur's proposals aim to strengthen customs controls, improve financial oversight, enhance cooperation, and modernise governance. If adopted, these measures will aid in the fight against fraud, increase accountability, and help equip the EU Customs Union for current and future challenges.

AMENDMENTS

The Committee on Budgetary Control 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 15

Text proposed by the Commission

Amendment

(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.

Or. en

Amendment 2

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 European Parliament 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.

Or. en

Amendment 3

Proposal for a regulation

Recital 59

Text proposed by the Commission

Amendment

(59) In order to increase clarity and make the cooperation framework between customs and other partner authorities more efficient, a list of services offered by customs authorities should define clearly the possible role of customs in the application of other relevant policies at the borders of the Union. In addition, the application of the cooperation framework should be monitored by the EU Customs Authority. The EU Customs Authority should work closely and cooperate with the Commission, OLAF, other relevant Union agencies and bodies, such as Europol and Frontex as well as specialised agencies and networks in the respective policy fields, such as the EU Product Compliance Network.

(59) In order to increase clarity and make the cooperation framework between customs and other partner authorities more efficient, a list of services offered by customs authorities should define clearly the possible role of customs in the application of other relevant policies at the borders of the Union. In addition, the application of the cooperation framework should be monitored by the EU Customs Authority. The EU Customs Authority should work closely and cooperate with the Commission, OLAF, EPPO, other relevant Union agencies and bodies, such as Europol and Frontex as well as specialised agencies and networks in the respective policy fields, such as the EU Product Compliance Network.

Or. en

Amendment 4

Proposal for a regulation

Article 5 – paragraph 1 – point 64 a (new)

Text proposed by the Commission

Amendment

(64 a) 'Customs gap' mean the difference between the actual import duties collected and the amount that should theoretically be collected taking into account customs duties that are at risk of either not being declared or being declared incorrectly to the national customs authorities by importers;

Or. en

Justification

The European Parliament and the Court of Auditors have repeatedly requested that the Commission calculates the 'customs gap', but so far it has failed to do so. The codification of this issue may be necessary to reach a satisfactory conclusion on the problem.

Amendment 5

Proposal for a regulation

Article 23 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

The customs authorities shall at least every 3 years perform an in-depth monitoring of the authorised economic operator’s activities and internal records.

The customs authorities shall, 1 year after granting the authorisation and at least every 3 years hereafter, perform an in-depth monitoring of the authorised economic operator’s activities and internal records.

Or. en

Justification

It seems reasonable to carry out a first assessment shortly after giving the authorisation, to ensure an adequate implementation of the measures evaluated.

Amendment 6

Proposal for a regulation

Article 23 – paragraph 5

Text proposed by the Commission

Amendment

5. Customs authorities shall, on the basis of the recognition of the status and provided that the requirements related to a specific type of simplification provided for in the customs legislation are fulfilled, authorise the operator to benefit from that simplification. Customs authorities shall not re-examine those criteria which have already been examined when granting the status.

5. Customs authorities shall, on the basis of the recognition of the status and provided that the requirements related to a specific type of simplification provided for in the customs legislation are fulfilled, authorise the operator to benefit from that simplification. Customs authorities might re-examine those criteria which have already been examined when granting the status if considered necessary.

Or. en

Justification

Customs authorities might be empowered to re-examine the criteria if considered necessary, taking into account their knowledge about the specific situation of the operators.

Amendment 7

Proposal for a regulation

Article 24 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) the absence of any serious infringement or repeated infringements of customs legislation and taxation rules and no record of serious criminal offences; the infringements and offences to be considered are those relating to economic or business activities;

(a) the absence of any infringement punished by fines exceeding EUR 10 000 in customs matters or EUR 5 000 for tax matters, or infringements committed within one year of a similar infringement, in customs legislation and taxation rules, and no record of criminal offences; the infringements and offences to be considered are those relating to economic or business activities;

Or. en

Justification

The concept of "serious or repeated infringement" has been found to be open to interpretation in different Member States, resulting in an uneven application of the rules. It is proposed to replace such concept by a more specific one.

Amendment 8

Proposal for a regulation

Article 25 – paragraph 2

Text proposed by the Commission

Amendment

2. The customs authorities shall grant the status following consultation with other authorities, if necessary, and after having had access to the relevant data of the applicant for the last 3 years in order to assess compliance with the criteria in paragraph 3.

2. The customs authorities shall grant the status following consultation with other authorities, unless deemed unnecessary, and after having had access to the relevant data of the applicant for the last 3 years in order to assess compliance with the criteria in paragraph 3.

Or. en

Justification

By default, customs authorities should consider the possibility of having to consult with other authorities, and only if they decide that this is not needed actively, continue with the procedure.

Amendment 9

Proposal for a regulation

Article 25 – paragraph 3 – point a

Text proposed by the Commission

Amendment

Or. en

Justification

Amendment 10

Proposal for a regulation

Article 25 – paragraph 4 – subparagraph 2

Text proposed by the Commission

Amendment

The customs authorities at least every 3 years shall perform and in-depth monitoring of the Trust and Check trader’s activities and internal records. The Trust and Check trader shall inform the customs authorities of any changes in its corporate structure, ownership, solvency situation, trading models or any other significant changes in its situation and activities. The customs authorities shall re-assess the status of the Trust and Check trader if any of these changes have a significant impact on the Trust and Check status. The customs authorities may suspend this authorisation until a decision on the reassessment is taken.

The customs authorities, at least 1 year after granting the authorisation and at least every 3 years thereafter, shall perform and in-depth monitoring of the Trust and Check trader’s activities and internal records. The Trust and Check trader shall inform the customs authorities of any changes in its corporate structure, ownership, solvency situation, trading models or any other significant changes in its situation and activities. The customs authorities shall re-assess the status of the Trust and Check trader if any of these changes have a significant impact on the Trust and Check status. The customs authorities may suspend this authorisation until a decision on the reassessment is taken.

Or. en

Justification

It seems reasonable to carry out a first assessment shortly after giving the authorisation, to ensure an adequate implementation of the measures evaluated.

Amendment 11

Proposal for a regulation

Article 29 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) enable risk analysis, economic analysis and data analysis, including through the use of artificial intelligence systems in accordance with [the Artificial Intelligence Act 2021/0106 (COD)]65 ;

(d) enable risk analysis, economic analysis and data analysis, including for fraud detection and prevention and audit purposes, and including through the use of artificial intelligence systems in accordance with [the Artificial Intelligence Act 2021/0106 (COD)]65 ;

__________________

65 Regulation (EU) …./.. of the European Parliament and of the Council (OJ L…,../../…., p..). [OJ: Please insert in the text the number of the Regulation contained in document COM(2021) 206 final, 2021/0106(COD)) and insert the number, date, title and OJ reference of that Directive in the footnote.]

Or. en

Amendment 12

Proposal for a regulation

Article 29 – paragraph 1 – point h a (new)

Text proposed by the Commission

Amendment

(h a) Enable the adequate measurement of performance of the Authorised Economic Operator programme through the implementation of the reporting of mandatory AEO-related information by customs authorities of Member States;

Or. en

Justification

There is no performance measurement framework in place to assess the effective and efficient achievement of the AEO programme's objectives, and data may be reported only voluntarily by the Member States. This does not allow for an adequate measure of the effectiveness of the AEO programme.

Amendment 13

Proposal for a regulation

Article 31 – paragraph 6

Text proposed by the Commission

Amendment

6. The European Public Prosecutor’s Office (‘EPPO’) may, upon request, access data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary for carrying out its tasks pursuant to Article 4 of Council Regulation (EU) 2017/193966 , insofar as the conduct investigated by EPPO concerns customs and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

6. The European Public Prosecutor’s Office (‘EPPO’) may process data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary for carrying out its tasks pursuant to Article 4 of Council Regulation (EU) 2017/193966 , insofar as the conduct investigated by EPPO concerns customs-related matters.

__________________

66 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).

Or. en

Amendment 14

Proposal for a regulation

Article 31 – paragraph 10 a (new)

Text proposed by the Commission

Amendment

10 a. The European Court of Auditors (ECA) may access data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary to perform its tasks in accordance with the Treaty on the Functioning of the European Union, as long as those tasks concern customs-related matters.

Or. en

Amendment 15

Proposal for a regulation

Article 51 – paragraph 5 – introductory part

Text proposed by the Commission

Amendment

5. The EU Customs Authority shall perform Union-level risk management activities on the basis of the customs policy orientations as referred to in paragraph 3, point (a) and of the priorities as referred to in paragraph 2. It shall:

5. The EU Customs Authority shall perform Union-level risk management activities taking into account the customs policy orientations as referred to in paragraph 3, point (a) and of the priorities as referred to in paragraph 2. It shall:

Or. en

Amendment 16

Proposal for a regulation

Article 51 – paragraph 5 – point c

Text proposed by the Commission

Amendment

(c) where requested in accordance with paragraph 3, develop supervision strategies, where appropriate with authorities other than customs, and conduct threat assessments;

(c) Autonomously and where requested in accordance with paragraph 3, develop supervision strategies, where appropriate with authorities other than customs, and conduct threat assessments;

Or. en

Amendment 17

Proposal for a regulation

Article 51 – paragraph 5 – point f

Text proposed by the Commission

Amendment

(f) inform OLAF where it identifies or suspects cases of fraud and provide it with all the necessary information related to these cases.

(f) inform OLAF and the EPPO where it identifies or suspects cases of fraud or criminal offences in their respective areas of competence, and provide them with all the necessary information related to these cases.

Or. en

Amendment 18

Proposal for a regulation

Article 51 – paragraph 7

Text proposed by the Commission

Amendment

7. The EU Customs Authority shall inform the Commission about its risk management activities and their outcome on a quarterly and, where necessary or requested by the Commission, ad hoc basis. It shall provide all necessary information to the Commission in this regard.

7. The EU Customs Authority shall inform the Commission about its risk management activities and their outcome on a quarterly and, where necessary or requested by the Commission or OLAF, ad hoc basis. It shall provide all necessary information to them in this regard.

Or. en

Amendment 19

Proposal for a regulation

Article 208 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) carry out performance measurement for the customs union, and support the Commission in its evaluation of the performance of the customs union, in accordance with Title XV, Chapter 1;

(b) carry out performance measurement for the customs union, and support the Commission in its evaluation of the performance of the customs union, in accordance with Title XV, Chapter 1; in particular, it is also tasked with the measurement of the performance of the AEO programme's objectives;

Or. en

Justification

It has been found that there was no adequate measurement of the performance of the AEO programme in the past. In this line, mandatory data reporting needs to be established.

Amendment 20

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(l a) provide support and expertise to the Commission, OLAF and ECA for the determination of the amount of customs duties at risk of either not being declared or being declared incorrectly to the national customs authorities by importers, including amounts not captured in member states’ traditional own resources (TOR) accounting systems.

Or. en

Justification

Even though it has been repeatedly requested by Parliament and the Court of Auditors, the Commission has not been able to determine customs duties at risk of not being collected (known as the "customs gap"). The proposed agency may be able to carry out this task more effectively.

Amendment 21

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.

2. The Management Board shall also include two members designated by the European Parliament.

Or. en

Justification

Due to the complexity and multiple aspects involved in this new agency, including not only customs but also budgetary issues, it is proposed to have two members designated by the European Parliament, also in line with the representation given to the Commission.

Amendment 22

Proposal for a regulation

Article 215 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) adopt, by a majority of two-thirds of members with voting rights, the annual budget of the EU Customs Authority and exercise other functions in respect of the EU Customs Authority's budget pursuant to Chapter 4;

(b) adopt the annual budget of the EU Customs Authority and exercise other functions in respect of the EU Customs Authority's budget pursuant to Chapter 4;

Or. en

Amendment 23

Proposal for a regulation

Article 215 – paragraph 1 – point s

Text proposed by the Commission

Amendment

(s) taking into account the opinion of the Commission, adopt the EU Customs Authority's single programming document by a majority of two-thirds of members with voting rights and in accordance with Article 216;

(s) taking into account the opinion of the Commission, adopt the EU Customs Authority's single programming document;

Or. en

Amendment 24

Proposal for a regulation

Article 216 – paragraph 1

Text proposed by the Commission

Amendment

1. Without prejudice to Article 215(1), points (b), (m) and (s), the Management Board shall take decisions by absolute majority of its members with voting rights.

1. The Management Board shall take decisions by two-thirds majority vote of its members with voting rights.

Or. en

Amendment 25

Proposal for a regulation

Article 235 – paragraph 2

Text proposed by the Commission

Amendment

2. The evaluation shall, in particular, address the possible need to modify the mandate of the EU Customs Authority, and the financial implications of any such modification.

2. The evaluation shall, in particular, address the possible need to modify the mandate of the EU Customs Authority, and the financial implications of any such modification, including the consideration of the full integration of all national customs administrations in one, single EU customs service.

Or. en

Justification

The policy option of integrating national customs administrations into a single EU service would need to be evaluated in light of the assessment of the new UCC and proposed agency.

Amendment 26

Proposal for a regulation

Article 238 – paragraph 1

Text proposed by the Commission

Amendment

1. The EU Customs Authority is established as of 2026 and shall become fully operational by 2028.

1. The EU Customs Authority shall become fully operational two years after the entry into force of this Regulation.

Or. en

Amendment 27

Proposal for a regulation

Article 239 – paragraph 2

Text proposed by the Commission

Amendment

2. Customs authorities may temporarily make customs officers available to work in the customs authorities of another Member State. The EU Customs Authority shall be informed and may coordinate such assignments.

2. Customs authorities may temporarily make customs officers available to work in the customs authorities of another Member State or in the EU Customs Authority. The EU Customs Authority may temporarily make its staff available to work in the customs authorities of a Member State. The EU Customs Authority shall be informed and may coordinate such assignments.

Or. en

Amendment 28

Proposal for a regulation

Article 240 – paragraph 9

Text proposed by the Commission

Amendment

9. The EU Customs Authority may develop a framework for operational cooperation with other EU bodies, including Europol and Frontex, in accordance with paragraphs 2, 4 and 5, and may participate in and contribute to strategic analyses and threat assessments, policy cycles, innovation programmes, training activities, networks and other activities which are relevant for the implementation of its tasks and are organised by such other bodies.

9. The EU Customs Authority shall develop a framework for operational cooperation with other EU bodies, including Europol and Frontex, in accordance with paragraphs 2, 4 and 5, and may participate in and contribute to strategic analyses and threat assessments, policy cycles, innovation programmes, training activities, networks and other activities which are relevant for the implementation of its tasks and are organised by such other bodies.

Or. en

Amendment 29

Proposal for a regulation

Article 265 – paragraph 1

Text proposed by the Commission

Amendment

1. Articles 205 to 237 shall apply from 1 January 2028.

1. Articles 205 to 237 shall apply from the date established in Article 238.

Or. en

Amendment 30

Proposal for a regulation

Article 265 – paragraph 3

Text proposed by the Commission

Amendment

3. The functionalities of the EU Customs Data Hub laid down in Article 29 shall be fully operational by 31 December 2037.

3. The functionalities of the EU Customs Data Hub laid down in Article 29 shall be fully operational two years after the date set in article 238.

Or. en

Amendment 31

Proposal for a regulation

Article 265 – paragraph 4

Text proposed by the Commission

Amendment

4. Economic operators may start fulfilling their reporting obligations under this Regulation by using the EU Customs Data Hub from 1 March 2032.

4. Economic operators may start fulfilling their reporting obligations under this Regulation by using the EU Customs Data Hub by one year after the date set in article 238.

Or. en

Amendment 32

Proposal for a regulation

Article 265 – paragraph 5

Text proposed by the Commission

Amendment

5. The customs authorities shall reassess the authorisations granted pursuant to Regulation (EU) No 952/2013 from 1 January 2035 to 31 December 2037.

5. The customs authorities shall reassess the authorisations granted pursuant to Regulation (EU) No 952/2013 the date of entry into force of this Regulation and the date set in article 238.

Or. en

Amendment 33

Proposal for a regulation

Article 265 – paragraph 7 – introductory part

Text proposed by the Commission

Amendment

7. By 31 December 2035, the Commission shall present a report to the European Parliament and to the Council to assess, in particular:

7. By two years after the date set in article 238, the Commission shall present a report to the European Parliament and to the Council to assess, in particular:

Or. en

ANNEX: entities or persons

from whom the rapporteur for the OPINION has received input

The rapporteur has received input from the following entities or persons in the preparation of the draft opinion:

Entity and/or person

Ecommerce Europe - the European Digital Commerce association

The list above is drawn up under the exclusive responsibility of the rapporteur.