Sittings · Document

OPINION (COM(2023)0258 – C90175 – 2023/0156(COD)) 2024-02-12

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 International Trade · Rapporteur: Saskia Bricmont

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EXPLANATORY STATEMENT

The EU’s imports and exports combined were worth approximately €4 trillion in 2019 (representing around 25 % of the EU’s GDP), about 2/3 of these flows are goods crossing borders.

Each year, close to 700 million items enter the EU, more than 350 million are declared for export to third countries and another 15 million transit via the Customs Union. That means close to 33 items declared every second for a customs value of about EUR 150,000.

This demonstrates the impact of international trade on the EU’s economic activity.

It implies that customs play a crucial but relatively unknown role in implementing EU’s international trade and economic agreements and EU’s international trade policies and rules at the external border of the EU. Customs act as guardians of single market and supply chain security. They are fundamental to ensure competitiveness, sustainability, resilience in a challenging geopolitical context.

Since the last major revision of the customs code in 2013, the world has changed (rise of digital commerce, persistence or appearance of new trade irritants, Brexit, pandemic, unprovoked, undeclared and illegal invasion of Ukraine by Russia and the war that unfolded, increasing attention paid to sustainability - SDGs, Paris and Biodiversity Agreements -, etc.) and the EU has engaged on a path to adapt to the new challenges and to respond to previous challenges in a more efficient way. Concretely, the EU had adopted autonomous measures, product-specific or cross-cutting regulations and when it comes to customs matters, the Financial Risks Criteria and Standards Implementing decision (the “FRC decision”) and guidance in order to harmonise Member States’ selection of imports for controls. Also, the trade agreements negotiated by the EU also contain provisions related to cooperation in the area of Customs with third countries.

Therefore, a deep revision of the Union Customs Code was needed because “the success of the EU ambitions related to people’s welfare, sustainable societies and trade prosperity may be jeopardised if Customs fail to properly protect the EU border at all its entry points. The Union’s border is as strong as its weakest entry point”. (Wise Persons Report, 2022) In light of the foregoing, the revision rests on the foresight report on “The Future of Customs in the EU 2040“ (2020), and the Commission’s Customs Action Plan (2020), various reports of the European Court of Auditors (2018, 2019, 2021) and the Report by the Wise Persons Group on the Reform of the EU Customs Union (2022). It features new provisions and arrangements inter alia:

• the new rules for online sellers and e-commerce platforms;

• the new status of ‘Trust and Check’ traders;

• the setting up of the EU Customs Data Hub and the establishment of the EU Customs Authority;

• a new cooperation framework for structured collaboration between customs authorities and other authorities such as market surveillance authorities and environmental protection bodies; and

• the introduction of a minimum common core of acts or omissions that constitute customs infringements and a minimum common core of non-criminal sanctions;

While your Rapporteur supports the overall direction taken by the revision, the proposed amendments aim at clarifying or strengthening the UCC.

1. It is appropriate to improve the coherence between the revised Code itself and the other legislations (such as CBAM, Deforestation Regulation, Forced Labour Regulation, Corporate Sustainable Due Diligence Directive (CSDDD), REACH and future initiatives) that all involve customs in a way or another by imposing specific controls and obligations in terms of data sharing and/or reporting. It is also important that considering their growing importance in the shaping of trade rules and in EU legislations, Multilateral Environmental Agreements are better factored in the Code.

2. Customs and their IT systems are a critical infrastructure considering their central role; foreign entities can try to misuse them to collate sensitive economic information that they could use for non-commercial purposes. The Code should be adapted as per the recent strategy on the European economic security and the related legislations on cybersecurity.

3. Civil society organisations should have the possibility to send early warnings to the customs when they have reliable information - thanks to their international network - that goods not complying with an EU legislation would be shipped to the EU. Such an information could be used to enrich the EU Customs Data Hub and to intensify controls where appropriate.

4. One priority of the EU policy-making is to improve the sourcing of raw materials and circular economy. The World Customs Organisation is currently conducting an exploratory study on a slight adjustment of the Harmonized System so that it contributes to scale up circular economy. The EU Customs Authority should be tasked to be proactive by fostering a common EU approach of customs and other relevant authorities so that the EU acts as one in that forum.

5. Customs have a role to play in fighting circumventions and indirect violations of EU’s sanctions against Russia or whatever sanctions could be decided in the future. The Code already foresees the possibility to adopt restrictive measures or sanctions and this part could be made more explicit.

6. Economic Authorized Operators and Trust and Check traders would account for 80% of trade. Therefore, it is essential to guarantee that the significant benefits granted to the economic operators enjoying this status are matched by controls and that the status is repealed if they are found non complying with fiscal and non-fiscal legislation like CSDDD.

AMENDMENTS

The Committee on International Trade 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 1

Text proposed by the Commission

Amendment

The Union and the functioning of the internal market are based upon the customs union. In the interests both of economic operators and of the customs authorities in the Union, Regulation (EU) No 952/2013 of the European Parliament and of the Council40 laying down the Union Customs Code (‘the Code’) assembled in a single act customs legislation that was contained in several different pieces of legislation, containing the general rules and procedures, for ensuring the implementation of the tariff and other measures introduced at Union level in connection with trade in goods between the Union and countries or territories outside the customs territory of the Union, and the provisions relating to the collection of import charges. Member States customs authorities are responsible for implementing these rules by way of operational tasks like applying customs procedures, carrying out risk analysis and controls and applying sanctions in the case of customs infringements.

(1) The Union and the functioning of the internal market are based upon the customs union. The EU’s imports and exports combined were worth approximately 4 trillion EUR in 2019 (representing around 25 % of the EU’s GDP), about two thirds of these flows are goods crossing borders. Each year, close to 700 million items enter the EU, more than 350 million are declared for export to third countries and another 15 million transit via the customs union. In the interests both of economic operators and of the customs authorities in the Union, Regulation (EU) No 952/2013 of the European Parliament and of the Council40 laying down the Union Customs Code (‘the Code’) assembled in a single act customs legislation that was contained in several different pieces of legislation, containing the general rules and procedures, for ensuring the implementation of the tariff and other measures introduced at Union level in connection with trade in goods between the Union and countries or territories outside the customs territory of the Union, and the provisions relating to the collection of import charges. Member States customs authorities are responsible for implementing these rules by way of operational tasks like applying customs procedures, carrying out risk analysis and controls and applying sanctions in the case of customs infringements.

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40 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (recast) (OJ L 269, 10.10.2013, p. 1).

Amendment 2

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

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 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.

(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 citizens, consumers and businesses as well as other legislation that is relevant for customs. Nowadays, there are more than 350 pieces of EU legislation regulating placing on the EU market or other restrictive measures and covering a wide range of policy areas. This number has nearly quadrupled over the last 20 years. As the Report by the Wise Persons Group states: “The success of the EU ambitions related to people’s welfare, sustainable societies and trade prosperity may be jeopardised if Customs fail to properly protect the EU border at all its entry points.” Also, it is important that the revision of the Customs Code supports the goals of the World Trade Organization Trade Facilitation Agreement which aims to establish a reliable and user-friendly framework for economic operators that will minimize the administrative load on businesses while simultaneously upholding the necessary compliance standards. 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.

Amendment 3

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

In order to provide for effective means of achieving the objectives of the customs union, a number of rules and procedures regulating how goods are brought into or taken out of the customs territory of the Union should be revised and simplified. A modern, integrated set of interoperable electronic services should be provided for collecting, processing and exchanging information relevant for implementing customs legislation (European Union Customs Data Hub, ‘EU Customs Data Hub’). A European Union Customs Authority (‘EU Customs Authority’) should be established as a central, operational capacity for the coordinated governance of the customs union in specific areas.

(4) In order to provide for effective means of achieving the objectives of the customs union, a number of rules and procedures regulating how goods are brought into or taken out of the customs territory of the Union should be revised and simplified. A modern, integrated set of interoperable electronic services should be provided in line with GDPR and the Data Protection Regulation (EUDPR) for collecting, processing and exchanging information relevant for implementing customs legislation (European Union Customs Data Hub, ‘EU Customs Data Hub’). A European Union Customs Authority (‘EU Customs Authority’) should be established as a central, operational capacity for the coordinated governance of the customs union in specific areas.

Amendment 4

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

Since the adoption of Regulation (EU) No 952/2013, the role of customs authorities has evolved to increasingly cover the application of Union and national legislation laying down requirements on goods subject to customs supervision, in particular the non-financial requirements on goods that are necessary for these goods to enter and circulate in the internal market. Such non-financial tasks have increased exponentially over the years in line with growing expectations of Union businesses and citizens regarding safety, security, accessibility for persons with disabilities, sustainability, human, animal and plant health and life, the environment, the protection of human rights and Union values. New tools, such as the Digital Product Passport, are to be introduced to ensure that other legislation applied by the customs authorities related to products continues to respond to these expectations. It is therefore necessary to reflect the increasing number and complexity of non-financial risks by including in the mission of customs authorities a specific reference to protecting all these public interests and, where applicable, national legislation, in close cooperation with other authorities.

(5) Since the adoption of Regulation (EU) No 952/2013, the role of customs authorities has evolved to increasingly cover the application of Union and national legislation laying down requirements on goods subject to customs supervision, in particular the non-financial requirements on goods that are necessary for these goods to enter and circulate in the internal market. Such non-financial tasks have increased exponentially over the years in line with growing expectations of Union businesses and citizens, and the autonomous measures introduced as a result, such as regarding safety, security, accessibility for persons with disabilities, sustainability, human, animal and plant health and life, the environment, the protection of human rights and Union values. New tools, such as the Digital Product Passport, are to be introduced to ensure that other legislation applied by the customs authorities related to products continues to respond to these expectations. It is therefore necessary to reflect the increasing number and complexity of non-financial risks by including in the mission of customs authorities a specific reference to protecting all these public interests and, where applicable, national legislation, in close cooperation with other authorities.

Amendment 5

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

In light of the evolution of their role and of the business models in which they operate and in order for customs authorities to ‘act as one’ and to contribute to the smooth functioning of the internal market, it is necessary to describe more precisely the mission customs authorities have to perform by indicating more accurately their objectives and tasks.

(6) In light of the evolution of their role and of the business models in which they operate and in order for customs authorities to ‘act as one’ and to contribute to the smooth functioning of the internal market, it is necessary to describe more precisely on the one hand, the mission customs authorities have to perform by indicating more accurately their objectives and tasks and on the other hand, the web of operational relationships among customs authorities and between themselves and other relevant national authorities and international authorities.

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

Beyond their traditional role of collecting customs duties, VAT and excise and applying customs legislation, customs authorities also play a critical role in enforcing other Union and, where applicable, other national legislation on customs matters. A definition of this ‘other legislation applied by the customs authorities’ should be introduced in order to build an effective framework for regulating the application and supervision of these particular requirements on goods. Such prohibitions and restrictions can be justified on grounds of, inter alia, public morality, public policy or public security, the protection of the health and life of humans, animals or plants, the protection of the environment, the protection of national treasures possessing artistic, historic or archaeological value and the protection of industrial or commercial property and other public interests, including controls on drug precursors, goods infringing certain intellectual property rights and cash. The notion of other legislation applied by the customs authorities should also include commercial policy measures and fishery conservation and management measures, as well as restrictive measures adopted on the basis of Article 215 TFEU.

(8) Beyond their traditional role of collecting customs duties, VAT and excise and applying customs legislation, customs authorities also play a critical role in enforcing other Union and, where applicable, other national legislation on customs matters. A definition of this ‘other legislation applied by the customs authorities’ should be introduced in order to build an effective framework for regulating the application and supervision of these particular requirements on goods and should be regularly updated to include the most recent pieces of legislation impacting EU customs. Such prohibitions and restrictions can be justified on grounds of, inter alia, public morality, public policy or public security, the protection of the health and life of humans, animals or plants, the protection of the environment, the protection of national treasures possessing artistic, historic or archaeological value and the protection of industrial or commercial property and other public interests, including controls on drug precursors, goods infringing certain intellectual property rights and cash. The notion of other legislation applied by the customs authorities should also include inter alia commercial policy measures and fishery conservation and management measures, as well as restrictive measures adopted on the basis of Article 215 TFEU.

Amendment 7

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8 a) Most illicit activities affecting the environment take place beyond national borders. They endanger the habitability of the planet Earth and risk undermining the European Green Deal and impairing a level playing field between economic operators. By ensuring that the relevant laws are enforced at the borders, customs and border control officers play a pivotal role in the enforcement chain, helping to protect citizens and the environment from the increasingly devastating effects of these activities (Green Customs Guide to Multilateral Environmental Agreements, UNEP, 2022). They are involved in several practicalities of implementing Multilateral Environmental Agreements (‘MEAs’) and related national legislation, e.g., the identification and checking of suspicious items; the seizure and disposal; health and safety matters; legal issues; the cooperation with other authorities; the reporting of cases of illegal traffic in environmentally sensitive commodities. Hence, the importance of improving the awareness of MEAs and related national laws, of a better coordination with relevant regulatory authorities, of upgrading the technical know-how and of collecting and analyzing sufficient data. The concerned MEAs are inter alia:

a) the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal;

b) the Cartagena Protocol on Biosafety to the Convention on Biological Diversity;

c) the Convention on International Trade in Endangered Species of Wild Fauna and Flora;

d) the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction;

e) the Minamata Convention on Mercury;

f) the Montreal Protocol on Substances that Deplete the Ozone Layer;

g) the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade;

h) the Stockholm Convention on Persistent Organic Pollutants;

Amendment 8

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

(9 a) The Customs Code of the European Union should establish a robust framework for the functioning of economic operators. Any modifications or precisions to customs procedures and formalities following for instance the adoption of delegated or implementing acts should require the fulfilment of specified communication modalities, whenever this is deemed relevant, and should allow, when appropriate, for a sufficient adaptation period for the economic operators. In order to ensure uniformity and reduce complexity, any modifications to customs procedures and formalities should be consolidated and implemented collectively.

Amendment 9

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

The rights and obligation of the persons having responsibility over the goods entering into and exiting from the customs territory of the Union should be more clearly defined. The first obligation for persons having regular customs operations should continue to be registered with the customs authorities responsible for the place where they are established. A single registration should be valid for the whole customs union but should be up to date. Economic operators should therefore have the obligation to inform the customs authorities about any change in their registration data. The persons having responsibility over the goods entering and exiting from the customs territory of the Union are liable for any risks presented by the goods for the safety and security of citizens, as well as any risks to human, animal or plant health and life, the environment or consumers. The obligations of the importer should also be defined, in particular the obligation to be established in the customs territory of the Union and the exceptions to that obligation. These should follow the existing rules for the declarant to be established in the Union. Similarly, the obligations of the exporter should be defined.

(13) The rights and obligation of the persons having responsibility over the goods entering into and exiting from the customs territory of the Union should be more clearly defined, including for transparency on prices vis-à-vis consumers. The first obligation for persons having regular customs operations should continue to be registered with the customs authorities responsible for the place where they are established. A single registration should be valid for the whole customs union but should be up to date. Economic operators should therefore have the obligation to inform the customs authorities about any change in their registration data. The persons having responsibility over the goods entering and exiting from the customs territory of the Union are liable for any risks presented by the goods for the safety and security of citizens, as well as any risks to human, animal or plant health and life, the environment or consumers. The obligations of the importer should also be defined, in particular the obligation to be established in the customs territory of the Union and the exceptions to that obligation. These should follow the existing rules for the declarant to be established in the Union. Similarly, the obligations of the exporter should be defined.

Amendment 10

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

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.

(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 2 years taking into account the risk and the number of customs procedures.

Amendment 11

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

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. 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.

(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 ease the process for AEO to become Trust and Check traders until the end of the transition period and to introduce dedicated guidelines for SMEs. In case such an operator would infringe a non-fiscal obligations such as those foreseen in the Corporate Sustainable Due Diligence Directive, the Forced Labour Regulation, the Deforestation Regulation, the General Safety Product Regulation, the Conflict Minerals Regulation, the preferential status could be removed. It is estimated that Trust and Check traders would ultimately account for 80% of trade.

Amendment 12

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

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 and should comply with the relevant regulations for the processing of personal data and cybersecurity including GDPR and the Data Protection Regulation (EUDPR). 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. To safeguard against potential trade interruptions during extensive failures of centralized electronic systems or against potential interference activities whereby an economic operator would collate sensitive economic information ultimately intended for non-commercial purposes, it is imperative for the Commission and the EU Customs Authority to engage in cooperative efforts with Member States so that the EU Customs Data Hub integrates solutions ensuring a high level of cybersecurity. The EU Customs Authority should help raising awareness among customs authorities and make sure the EU Customs Data Hub is appropriately protected. In designing their National Cybersecurity Strategy, Member States should pay attention to potential attacks against their customs and prepare adequate response. This aims to protect the security of trade and avoid any damage to the Union economy. Cybersecurity standards should be designed to evolve in parallel with regulatory requirements for network and information systems security. In the development, operation and maintenance of the EU Single Window for Customs, the Commission and Member States should comply with the appropriate guidelines published by the European Union Agency for Cybersecurity (ENISA).

Amendment 13

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

The EU Customs Data Hub should enable the exchange of data with other systems, platforms, or environments for the purpose of increasing the quality of data used by customs in fulfilling their tasks, as well as for sharing relevant customs data with other authorities, for the purpose of increasing the effectiveness of controls in the internal market. In line with the approach set out in Regulation (EU) .../… of the European Parliament and of the Council45 and the European Interoperability Framework46 , the EU Customs Data Hub should foster cross-border and cross-sector interoperability in Europe. It should exploit the potential of existing sources of risk information available at Union level, such as the rapid alert systems for food and feed (RASFF) and for non-food products (Safety Gate), the Information and Communication System for Market Surveillance (ICSMS), the IP Enforcement Portal. It should underpin the development of strategic and operational cooperation, including information exchange and interoperability, between customs and other authorities, bodies and services, within their respective competences. Moreover, the EU Customs Data Hub should provide a wide range of advanced data analytics, also including through the use of artificial intelligence. That data analysis should be an enabler for risk analysis, economic analysis, and predictive analysis to anticipate possible risks with consignments coming to or moving from, the Union. To ensure better supervision of trade flows and a streamlined way of collaboration with authorities other than customs, the EU Customs Data Hub should be capable of making use of the framework of collaboration of the EU Single Window Environment for Customs and, where that framework cannot be used, offer those authorities a specific service through they can obtain the relevant data, provide and share information to the customs authorities and make sure that the sectorial requirements are complied with. This would be necessary in case the other authorities would not have an electronic system that could be federated with the EU Customs Data Hub.

(20) The EU Customs Data Hub should enable the exchange of data with other systems, platforms, or environments for the purpose of increasing the quality of data used by customs in fulfilling their tasks, as well as for sharing relevant customs data with other authorities such as market surveillance authorities and Member States’ authorities responsible for the enforcement of other relevant legislation and including from third countries to the extent necessary, for the purpose of increasing the effectiveness of controls in the internal market. In line with the approach set out in Regulation (EU) .../… of the European Parliament and of the Council45 and the European Interoperability Framework46 , the EU Customs Data Hub should foster cross-border and cross-sector interoperability in Europe. It should exploit the potential of existing sources of risk information available at Union level, such as the rapid alert systems for food and feed (RASFF) and for non-food products (Safety Gate), the Information and Communication System for Market Surveillance (ICSMS), the IP Enforcement Portal. It should underpin the development of strategic and operational cooperation, including information exchange and interoperability, between customs and other authorities, bodies and services, within their respective competences. Moreover, the EU Customs Data Hub should provide a wide range of advanced data analytics, also including through the use of artificial intelligence. That data analysis should be an enabler for risk analysis, economic analysis, and predictive analysis to anticipate possible risks with consignments coming to or moving from, the Union. To ensure better supervision of trade flows and a streamlined way of collaboration with authorities other than customs, the EU Customs Data Hub should be capable of making use of the framework of collaboration of the EU Single Window Environment for Customs and, where that framework cannot be used, offer those authorities a specific service through they can obtain the relevant data, provide and share information to the customs authorities and make sure that the sectorial requirements are complied with. This would be necessary in case the other authorities would not have an electronic system that could be federated with the EU Customs Data Hub.

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45 [OJ: Please insert in the text the number of the Regulation contained in document COM/2022/720 final – 2022/0379 (COD) and insert the number, date, title and OJ reference in this footnote.] Regulation (EU) ../…. of the European Parliament and of the Council laying down measures for a high level of public sector interoperability across the Union (Interoperable Europe Act) [COM/2022/720 final – 2022/0379 (COD)] (OJ L ..,…..2023, p. .).

46 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the committee of the regions European Interoperability Framework – Implementation Strategy (COM/2017/0134 final).

Amendment 14

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

The data submitted to the EU Custom Data Hub is to a large extent non-personal data submitted by economic operators of the goods they are trading with. Nevertheless, the data will also include personal data, in particular names of individuals acting for an economic operator or an authority. To ensure that personal data and commercial information are equally protected, it is appropriate that specific access rules, rules for confidentiality and conditions for the use of the EU Customs Data Hub are established by this Regulation. In particular, it should be established which entities may access or process data stored or otherwise available in the EU Customs Data Hub, in addition to the persons, the Commission, the customs authorities and the EU Customs Authority, balancing the needs of these entities with the need ensure that the personal and confidential data collected for customs purposes are used for additional purposes only to the minimum extent necessary.

(23) The data submitted to the EU Custom Data Hub is to a large extent non-personal data submitted by economic operators of the goods they are trading with. Nevertheless, the data will also include personal data, in particular names of individuals acting for an economic operator or an authority. To ensure that personal data and confidential commercial information are equally protected, it is appropriate that specific access rules, rules for confidentiality and conditions for the use of the EU Customs Data Hub are established by this Regulation. In particular, it should be established which entities may access or process data stored or otherwise available in the EU Customs Data Hub, in addition to the persons, the Commission, the customs authorities and the EU Customs Authority, balancing the needs of these entities with the need to ensure that the personal and confidential data collected for customs purposes are used proportionally.

Amendment 15

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

To ensure that the European Anti-Fraud Office (‘OLAF’) can exercise its investigations powers in relation to fraudulent activities that are affecting the interests of the Union, it is appropriate that it has access to data from the EU Customs Data Hub that is very similar to the access by the Commission. OLAF should therefore be entitled to process the data in accordance with the conditions relating to data protection in the relevant Union legislation, including Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council47 and Council Regulation (EC) No 515/9748 . To ensure that EPPO can conduct its investigations on customs-related matters, it should be entitled to request access to the data in the EU Customs Data Hub. To preserve the functions that are performed in Member States’ national IT systems, the tax authorities of the Member States should either obtain the possibility to process data directly within the EU Customs Data Hub or to extract data from the EU Customs Data Hub and process it through different means. As such, authorities responsible for food safety in accordance with Regulation Regulation (EU) 2017/625 of the European Parliament and of the Council49 and the authorities responsible for market surveillance in accordance with Regulation (EU) 2019/1020 should be provided with the right services and tools in the EU Customs Data Hub so that they can use the relevant customs data to contribute to enforcing the relevant Union legislation and for cooperating with customs authorities to minimise the risks that non-compliant products enter the Union. It is appropriate that Europol has access upon request to data in the EU Customs Data Hub to be able to perform its tasks as specified in Regulation (EU) 2016/794 of the European Parliament and of the Council50 . All other Union and national bodies and authorities, including the European Border and Coast Guard Agency (Frontex), should have access to non-personal data contained in the EU Customs Data Hub.

(24) To ensure that the European Anti-Fraud Office (‘OLAF’) can exercise its investigations powers in relation to fraudulent activities that are affecting the interests of the Union, it is appropriate that it has access to data from the EU Customs Data Hub that is very similar to the access by the Commission. OLAF should therefore be entitled to process the data in accordance with the conditions relating to data protection in the relevant Union legislation, including Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council47 and Council Regulation (EC) No 515/9748 . To ensure that EPPO can conduct its investigations on customs-related matters, it should be entitled to receive access to the data in the EU Customs Data Hub. To preserve the functions that are performed in Member States’ national IT systems, the tax authorities of the Member States should either obtain the possibility to process data directly within the EU Customs Data Hub or to extract data from the EU Customs Data Hub and process it through different means. As such, authorities responsible for food safety in accordance with Regulation Regulation (EU) 2017/625 of the European Parliament and of the Council49 and the authorities responsible for market surveillance in accordance with Regulation (EU) 2019/1020 should be provided with the right services and tools in the EU Customs Data Hub so that they can use the relevant customs data to contribute to enforcing the relevant Union legislation and for cooperating with customs authorities to minimise the risks that non-compliant products enter the Union. It is appropriate that Europol has access upon request to data in the EU Customs Data Hub to be able to perform its tasks as specified in Regulation (EU) 2016/794 of the European Parliament and of the Council50 . All other Union and national bodies and authorities, including the European Border and Coast Guard Agency (Frontex), should have access to non-personal data contained in the EU Customs Data Hub.

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47 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

48 Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters (OJ L 82, 22.3.1997, p. 1).

49 Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (Official Controls Regulation)(OJ L 95, 7.4.2017, p. 1).

50 Regulation (EU) 2016/794 of the European Parliament and of the Council of 11 May 2016 on the European Union Agency for Law Enforcement Cooperation (Europol) and replacing and repealing Council Decisions 2009/371/JHA, 2009/934/JHA, 2009/935/JHA, 2009/936/JHA and 2009/968/JHA (OJ L 135, 24.5.2016, p. 53).

Amendment 16

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on [...].

(30) The European Data Protection Supervisor (EDPS) was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on 13 July 2023. The EDPS made nine recommendations to better align the revised Customs Code to the EU data protection and privacy law. To fully preserve the protection of the personal data of EU consumers the principles of purpose limitation and data minimisation to the provisions concerning data protection in this Regulation must be applied.

Amendment 17

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

A Union-level customs risk management layer is fundamental for ensuring a harmonised application of customs controls in Member States. There is currently a common risk management framework comprising the possibility of identifying common priority controls areas and common risk criteria and standards in the financial risk arena for carrying out customs controls, but it has significant shortcomings. In order to address the lack of harmonised application of customs controls and of harmonised risk management harming the financial and non-financial interests of the Union and of the Member States, it is appropriate to revise the rules to establish a more solid risk management approach addressing both financial and non-financial risks. This includes tackling the structural challenges on the risk management of financial risks identified by the European Court of Auditors. In particular, it is appropriate to describe which activities are comprised in customs risk management, in a cyclical approach. It is also important to identify the roles and responsibilities of the Commission, the EU Customs Authority and the customs authorities of the Member States. It is also essential to provide that the Commission may establish common priority controls areas and common risk criteria and standards, and may identify specific areas in the domain of other legislation applied by the customs authorities that deserve priority for common risk management and controls, without compromising security.

(31) A Union-level customs risk management layer is fundamental for ensuring a harmonised application of customs controls in Member States and to allow for the proper enforcement of European legislation creating new tasks for customs. There is currently a common risk management framework comprising the possibility of identifying common priority controls areas and common risk criteria and standards in the financial risk arena for carrying out customs controls, but it has significant shortcomings. In order to address the lack of harmonised application of customs controls and of harmonised risk management harming the financial and non-financial interests of the Union and of the Member States, it is appropriate to revise the rules to establish a more solid risk management approach addressing both financial and non-financial risks. This includes tackling the structural challenges on the risk management of financial risks identified by the European Court of Auditors. In particular, it is appropriate to describe which activities are comprised in customs risk management, in a cyclical approach. It is also important to identify the roles and responsibilities of the Commission, the EU Customs Authority and the customs authorities of the Member States. It is also essential to provide that the Commission may establish common priority controls areas and common risk criteria and standards, and may identify specific areas in the domain of other legislation applied by the customs authorities that deserve priority for common risk management and controls, without compromising security. The Customs Advisory Board may contribute to that task.

Amendment 18

Proposal for a regulation

Recital 38 a (new)

Text proposed by the Commission

Amendment

(38 a) Customs authorities should integrate state-of-the-art technologies like artificial intelligence (AI) and non-intrusive inspection (NII) technologies, such as X-ray scanners, into their operational protocols. This recommendation aims at enhancing the efficiency and efficacy of customs inspections, particularly in managing the escalating volumes of cross-border e-commerce. The implementation of AI for automated image recognition and risk assessment in customs controls is recommended in order to reduce the reliance on manual scrutiny and mitigate the risk of human error. The use of cutting-edge image compression technologies for the economical gathering, storage, and archiving of X-ray scans is strongly encouraged. This should facilitate the establishment of a substantial image repository crucial for training and the development of Automated Threat Detection (ATD) algorithms. The adoption of the Internet of Things (IoT) technology is recommended to fortify security and streamline efficiency in customs operations. This encompasses the incorporation of sensors in vehicles and containers for effective cargo monitoring and journey tracking, as well as the enhancement of communication between X-ray scanners and electronic seals (e-seals) on containers. The formulation of policies and legislation to address privacy and data exchange challenges linked to the implementation of IoT in customs operations is also recommended. The use of Robotic Process Automation (RPA) in customs operations is promoted to execute high-volume, repetitive tasks more efficiently than human capacity allows. This includes the automation of the verification of manifests and declaration submissions, as well as the integration of optical character recognition systems for expeditious verification and correction processes. Customs administrations are recommended to embrace industry best practices and consistently revise their technological strategies to align with advancements in AI, IoT, and RPA. Continuous training and education for customs personnel are recommended to ensure the most effective use of these technologies. Adherence to these provisions should be subject to periodic reviews, assessing the efficacy of technology implementation in customs operations.

Amendment 19

Proposal for a regulation

Recital 40 a (new)

Text proposed by the Commission

Amendment

(40 a) The involvement of Small and Medium-sized Enterprises (SMEs) and Micro, Small, and Medium-sized Enterprises (MSMEs) in international trade is duly recognized as central to the European Union's economy. The Commission may adopt guidelines with a view to supporting SMEs and MSMEs recognizing the unique challenges faced by SMEs and MSMEs while maintaining the integrity and security of external trade processes in applying to the status of Authorised Economic Operators and Trust and Check traders. Continuous efforts should be made to simplify and make the procedures more accessible for SMEs and MSMEs, ensuring their vital role in the EU's external trade is facilitated and promoted.

Amendment 20

Proposal for a regulation

Recital 48 a (new)

Text proposed by the Commission

Amendment

(48 a) Customs collect duties and taxes. The persistent undervaluation of goods imported, misdeclarations of values, and splitting of consignment to stay below the threshold, all of this aggravated by the increase in trade volumes, are depriving the EU from substantial revenues. The customs revenue gap cannot be easily calculated because of the absence of reliable and comprehensive data and of various methodologies used by national customs authorities. Therefore, the EU Customs Authority could help solving this issue.

Amendment 21

Proposal for a regulation

Recital 50 a (new)

Text proposed by the Commission

Amendment

(50 a) The release of goods into free circulation is subject to their meeting specific conditions. Procedures for their implementation and enforcement by EU customs authorities and importers rely on determinations and attestations by exporting countries’ authorities and exporters that the goods in question meet those conditions. Provisions must be made to (a) identify systematic non-correspondences between such exporting country determinations and attestations and determinations and attestations made in accordance with EU law, when such non-correspondences are attributable to non-corresponding exporting country policies and practices, and (b) prevent such non-correspondences from resulting in the improper release of the concerned goods into free circulation. The Commission can issue notices to importers in order to warn importers of any systematic non-corresponding policies and resulting practice in third countries that may affect importers’ ability to comply with Union legislation, including the customs code, in light of importers’ frequent reliance on the determinations made by third country exporters and third country authorities.

Amendment 22

Proposal for a regulation

Recital 50 b (new)

Text proposed by the Commission

Amendment

(50 b) According to the Unfair Commercial Practices Directive, the geographical origin is one of the main characteristics of the products that “may cause the consumer to take a transactional decision that he would not have taken otherwise”. Goods must bear the right indication of their territory of origin. The origin or provenance must not be deceptive; it constitutes a misleading action that is prohibited as per this Directive.

Amendment 23

Proposal for a regulation

Recital 51 a (new)

Text proposed by the Commission

Amendment

(51 a) With hindsight, it appears that the effectiveness of Council Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine is undermined by loopholes. Economic operators based in the EU export large quantities of war-relevant goods to Russia either via its neighbours or directly. The EU Customs Authority should support customs in their fight against the circumvention of customs legislation and other relevant legislation by fraudulent economic operators. It can conclude working arrangements with other customs authorities for that purpose. In doing so, it will contribute to the European economic strategy and a proper implementation of the sanction regime.

Amendment 24

Proposal for a regulation

Recital 52 a (new)

Text proposed by the Commission

Amendment

(52 a) The response to the pandemic involved customs authorities to facilitate safety and security for the officials who must control goods and to allow for a swift handling and delivery of necessary personal protective equipment, vaccines, etc. The pandemic showcased the interventions of a plurality of actors including the WHO, the European Medicines Agency and other European and national regulators. Therefore, it highlights the need to ensure that in case of a crisis, the Regulation allows for a collaboration between the EU Customs Authority and other Union institutions, bodies, offices and agencies in areas where their activities relate to the management of the customs union.

Amendment 25

Proposal for a regulation

Recital 53

Text proposed by the Commission

Amendment

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 single 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 authorities’ activities.

(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 single market. The enhanced operational collaboration in the Customs Eastern and South-Eastern Land Border Expert team (CELBET) has shown promising results, and the recently established European Ports Alliance aims at establishing a coordinated EU approach to the fight against drugs trafficking via maritime ports. A central operational Union layer could provide the organisational capacity and tools needed to amplify and build on such initiatives. It could pool expertise and resources, and enable joint decision-making to further address weaknesses in areas such as data management, risk management and training, enabling the customs union to “act as one” in dealing with common priorities and challenges. 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 authorities’ activities.

Amendment 26

Proposal for a regulation

Recital 55

Text proposed by the Commission

Amendment

Criteria to be taken into account in order to contribute to the decision making process for choosing the EU Customs Authority seat should be the assurance that Authority can be set up on site upon the entry into force of this Regulation, the accessibility of the location and the existence of adequate education facilities for the children of staff members as well as appropriate access to the labour market, social security and medical care for both children and spouses of staff members. In view of the cooperative nature of most of the EU Customs Authority activities, and in particular the close connection that will exist between the IT systems that the Commission will maintain during the transitional period, while the EU Customs authority will build and operate the EU Customs Data Hub, it should be in a place that allows such close cooperation with the Commission, the authorities of the Union regions most relevant for international trade, and relevant Union and international bodies (for example the World Customs Organisation for facilitating practical cross fertilisation on specific subjects). Considering these criteria, the EU Customs Authority should be located at […].

(55) Criteria to be taken into account in order to contribute to the decision making process for choosing the EU Customs Authority seat should be the assurance that Authority can be set up on site upon the entry into force of this Regulation, the accessibility of the location and the existence of adequate education facilities for the children of staff members as well as appropriate access to the labour market, social security and medical care for both children and spouses of staff members. In view of the cooperative nature of most of the EU Customs Authority activities, and in particular the close connection that will exist between the IT systems that the Commission will maintain during the transitional period, while the EU Customs authority will build and operate the EU Customs Data Hub, it should be in a well-connected place that allows such close cooperation with the Commission, the authorities of the Union regions most relevant for international trade, and relevant Union and international bodies (for example the World Customs Organisation for facilitating practical cross fertilisation on specific subjects). Considering these criteria, the EU Customs Authority should be located at […].

Amendment 27

Proposal for a regulation

Recital 56

Text proposed by the Commission

Amendment

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 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. A Customs Advisory Board (CAB) should be composed of 10 representatives of civil society organisations and business in a balanced manner, representing employers federation, including at least one SME federation, pan-European consumers organisations and trade unions and human rights and environment civil social organisations. It should be established to assist the Executive Board and the EU Customs Authority by giving input on the customs dimensions of other legislation and by sending early warnings in case it has a substantiated concern to suspect that certain goods imported in the EU are likely to infringe customs legislation or other legislation. The CAB should take into account the information provided by the Domestic Advisory Groups. It may be granted access to the EU Customs Data Hub under provisions set by the Commission. It should enhance the collaborative efforts and share the knowledge base which is essential for robust and well-informed customs operations under the framework of FTAs.

Amendment 28

Proposal for a regulation

Recital 58 a (new)

Text proposed by the Commission

Amendment

(58 a) In recognition of the evolving landscape of global trade, characterized by the increasing prominence of cross-border e-commerce and the necessity for efficient customs controls, it is appropriate to provide for the enhanced use of artificial intelligence (AI) and non-intrusive inspection (NII) technologies in customs operations.

Justification

This recital and the corresponding article advocate for the integration of Artificial Intelligence (AI) and Non-Intrusive Inspection (NII) technologies, such as X-ray scanners and Internet of Things (IoT) devices, into customs operations to significantly enhance the efficiency, accuracy, and security of customs controls. By adopting these advanced technologies, customs authorities can automate and optimize processes like image identification, risk assessment, and cargo monitoring, reducing manual errors and increasing operational capacity, especially critical in managing the surge in cross-border e-commerce. Furthermore, the amendment emphasizes the importance of continuous training for customs personnel, policy development for data privacy, and regular updates to technological strategies, ensuring these innovations are effectively and responsibly integrated into customs practices.

Amendment 29

Proposal for a regulation

Recital 59 a (new)

Text proposed by the Commission

Amendment

(59 a) The need for a streamlined, efficient and accessible approach to manage and disseminate information related to autonomous trade measures and customs data management is increasingly vital for the proper functioning of international trade. A centralized, user-friendly portal for accessing all relevant and updated information including tariffs, quotas, sanctions, and embargoes, could help companies that face significant challenges to comply with various autonomous trade measures due to the complexity and fragmentation of information available and promote greater coherence among them and foster the compliance with their requirements. It would also reduce the burden on companies in sourcing this information, thereby promoting more coherent and effective application of these measures.

Amendment 30

Proposal for a regulation

Recital 60 a (new)

Text proposed by the Commission

Amendment

(60 a) The Harmonized System (HS) is the nomenclature allowing for the classification of all tradable goods in the world, including those that have yet to be invented, and that underpins the global trade system. A revision of the HS can be decided to establish a new classification for a new product type to make it more visible in order to collect global statistical information that is specific to the goods of interest and to implement particular trade measures to promote it. The World Customs Organisation that supervises the HS is for instance conducting an exploratory study looking at the overall health of the HS, and its level of adaption to the changing needs of trade and trade policy, including in relation to the environment and the circular economy. It is tasked with evaluating if there are potentially feasible strategic changes to the HS, or its tools, that could help the HS to better meet both the needs of today and the opportunities of tomorrow, and to report to the WCO Members on such possibilities. Considering the strategic importance of such an initiative in terms of global standards-setting, it is appropriate that the EU Customs Authority prepares and coordinates national customs authorities so that they can act as one when needed.

Amendment 31

Proposal for a regulation

Recital 61

Text proposed by the Commission

Amendment

Despite the fact that customs legislation is harmonised through the Code, Regulation (EU) No 952/2013 only included the obligation for Member States to provide for penalties for failure to comply with the customs legislation and required such penalties to be effective, proportionate and dissuasive. Member States have, therefore, the choice of customs penalties, which vary greatly across Member States and are subject to evolution over time. A common framework establishing a minimum core of customs infringements and of non-criminal sanctions should be laid down. Such framework is necessary to address the lack of uniform application and the significant divergences between Member States in the application of sanctions against breaches of customs legislation that can lead to a distortion of competition, loopholes and ‘customs shopping’. The framework should be composed of a common list of acts or omissions that should constitute customs infringements in all Member States. In determining the sanction applicable, customs authorities should define if these acts or omissions are committed intentionally or by obvious negligence.

(61) Despite the fact that customs legislation is harmonised through the Code, Regulation (EU) No 952/2013 only included the obligation for Member States to provide for penalties for failure to comply with the customs legislation and required such penalties to be effective, proportionate and dissuasive. Member States have, therefore, the choice of customs penalties, which vary greatly across Member States and are subject to evolution over time. A common framework establishing a minimum core of customs infringements and of non-criminal sanctions should be laid down. Such framework is necessary to address the lack of uniform application and the significant divergences between Member States in the application of sanctions against breaches of customs legislation that can lead to a distortion of competition, loopholes and ‘customs shopping’. The framework should be composed of a common list of acts or omissions that should constitute customs infringements in all Member States. In determining the sanction applicable, customs authorities should define if these acts or omissions are committed intentionally or by obvious negligence. The Commission should regularly assess whether the sanctions applied by Member States are a sufficient incentive to reach the objectives of this Union Customs Code and adjust its actions in line with its findings.

Amendment 32

Proposal for a regulation

Recital 62

Text proposed by the Commission

Amendment

It is necessary to establish common provisions for extenuating or mitigating factors, as well as for aggravating circumstances, with regard to the customs infringements. The limitation period for initiating the customs infringement proceedings should be established in accordance with national law and should be between 5 and 10 years, so as to provide for a common rule based on the time limitation for the notification of customs debt. The competent jurisdiction should be the one where the infringement was committed. Cooperation between Member States is necessary in cases where the customs infringement has been committed in more than one Member State; in such cases the Member State that first initiates the proceedings should cooperate with the other customs authorities concerned by the same customs infringement.

(62) It is necessary to establish common provisions for extenuating or mitigating factors, as well as for aggravating circumstances, with regard to the customs infringements. The partnership between customs and industry, particularly since the introduction of the Authorized Economic Operator (AEO), has demonstrated that, with few exceptions, companies are generally compliant. In light of this, in cases of labour errors, the initial focus should be on collaboratively improving the business process, rather than immediately resorting to punitive measures. Corrections to incorrect data in customs declarations should be facilitated to allow for easy rectification. Penalties and the withdrawal of authorizations should be considered as measures of last resort in response to infringements. Furthermore, the impact of penalties on the company should be proportionate, both in terms of the detected offense and its impact on the company. Penalties should be specifically related to duties and taxes actually foregone, excluding transitory items such as VAT. The limitation period for initiating customs infringement proceedings should be established in accordance with national law and should range between 5 and 10 years. This aligns with the time limitation for the notification of customs debt and provides a common rule. The competent jurisdiction should be the one where the infringement was committed. Cooperation between Member States is essential in cases where the customs infringement has occurred in more than one Member State. In such instances, the Member State that first initiates the proceedings should cooperate with the other customs authorities concerned by the same customs infringement.

Amendment 33

Proposal for a regulation

Recital 64

Text proposed by the Commission

Amendment

It is also necessary to establish a common minimum core of non-criminal sanctions providing for minimum amounts of pecuniary charges, the possibility of revocation, suspension or amendment of customs authorisations, including for Authorised Economic Operators and Trust and Check traders, as well as the confiscation of the goods. The minimum amounts of pecuniary charges should depend on whether the customs infringement has been committed intentionally or not and whether or not it has an impact on the amount of customs duties and other charges and on prohibitions or restrictions. This minimum common core of non-criminal sanctions should apply without prejudice to the national legal order of Member States, which can instead provide for criminal sanctions.

(64) It is also necessary to establish a common minimum core of non-criminal sanctions providing for minimum amounts of pecuniary charges, the possibility of revocation, suspension or amendment of customs authorisations, including for Authorised Economic Operators and Trust and Check traders, as well as the confiscation of the goods. The minimum amounts of pecuniary charges should depend on whether the customs infringement has been committed intentionally or not and whether or not it has an impact on the amount of customs duties and other charges and on prohibitions or restrictions. This minimum common core of non-criminal sanctions should apply without prejudice to the national legal order of Member States, which can instead provide for criminal sanctions. Since the Customs Code foresees new obligations for the deemed importers, pecuniary charges should be determined accordingly, considering that these are not cumulative to others.

Amendment 34

Proposal for a regulation

Recital 65

Text proposed by the Commission

Amendment

The performance of the customs union should be evaluated at least on an annual basis to allow the Commission, with the help of the Member States, to take the appropriate policy orientations. The collection of information from customs authorities should be formalised and deepened, as more comprehensive reporting would improve benchmarking and could help to homogenise practices and assess the impact of customs policy decisions. It is, therefore, appropriate to introduce a legal framework for the evaluation of the performance of the customs union. To allow sufficient granularity of analysis, the performance measurement should be done not only at national level but also at border crossing point level. The EU Customs Authority should support the Commission in the evaluation process by gathering and analysing the data in the EU Customs Data Hub and identifying how customs activities and operations support the achievement of the strategic objectives and priorities of the customs union and contribute to the mission of customs authorities. In particular, the EU Customs Authority should identify key trends, strengths, weaknesses, gaps, and potential risks, and provide recommendations for improvement to the Commission. In the context of cooperation with law enforcement and security authorities in particular, the EU Customs Authority should also participate, from the operational perspective, in strategic analyses and threat assessments conducted at Union level, including those carried out by Europol and Frontex.

(65) The Commission should at least annually evaluate the performance of the customs union to allow the Commission, with the help of the Member States, to make the appropriate policy changes. The collection of information from customs authorities should be formalised and deepened, as more comprehensive reporting would improve benchmarking and could help to homogenise practices and assess the impact of customs policy decisions. It is, therefore, appropriate to introduce a legal framework for the evaluation of the performance of the customs union. To allow sufficient granularity of analysis, the performance measurement should be done not only at national level but also at border crossing point level. The EU Customs Authority should support the Commission in the evaluation process by gathering and analysing the data in the EU Customs Data Hub and identifying how customs activities and operations support the achievement of the strategic objectives and priorities of the customs union and contribute to the mission of customs authorities. In particular, the EU Customs Authority should identify key trends, strengths, weaknesses, gaps, and potential risks, and provide recommendations for improvement to the Commission. In the context of cooperation with law enforcement and security authorities in particular, the EU Customs Authority should also participate, from the operational perspective, in strategic analyses and threat assessments conducted at Union level, including those carried out by Europol and Frontex.

Amendment 35

Proposal for a regulation

Recital 67 – indent 4

Text proposed by the Commission

Amendment

the type and frequency of the monitoring activities, the simplifications and the facilitations provided for the Authorised Economic Operator;

– the criteria for the granting of the status of Authorised Economic Operator, the type and frequency of the monitoring activities, the simplifications and the facilitations provided for the Authorised Economic Operator;

Amendment 36

Proposal for a regulation

Recital 67 – indent 5

Text proposed by the Commission

Amendment

the type and frequency of the monitoring activities of the Trust and Check trader;

– the granting of the status of Trust and Check trader, the type and frequency of the monitoring activities of the Trust and Check trader;

Amendment 37

Proposal for a regulation

Recital 69

Text proposed by the Commission

Amendment

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in order to: to adopt the procedural rules on the use of a decision relating to binding information after it ceases to be valid or is revoked; to adopt the procedural rules on the notification to the customs authorities that the taking of such decisions is suspended and on the withdrawal of such suspension; to adopt decisions requesting Member States to revoke decisions relating to binding information; to adopt the modalities for the application of the criteria for granting the status of Authorised Economic Operator and of Trust and Check trader; to determine the electronic systems, platforms or environments with which the EU Customs Data Hub federates; to determine the rules for the access to specific services and systems of the EU Customs Data Hub, including the specific rules and conditions for the protection, safety and security of personal data and where that access is limited; measures on the management of the surveillance by customs; to adopt the procedural rules regarding the responsibilities of the joint controllers for the data processing taking place by means of a service or system of the EU Customs Data Hub; to adopt the procedural rules for determining the competent customs offices other than the customs office responsible for the place where the importer or the exporter is established; to adopt measures on the verification of information, examination and sampling of goods, results of the verification and on identification; to adopt measures on the application of post-release controls in respect of operations taking place in more than one Member State; to determine the ports or airports where customs controls and formalities are to be carried out on cabin and hold baggage; to adopt measures to ensure the harmonised application of customs controls and risk management, including the exchange of information, the establishment of common risk criteria and standards and common priority control areas and the evaluation activities in these areas; to specify the procedural rules for the provision and verification of the proof of the customs status of Union goods; to specify the procedural rules for amending and for invalidating the information for placing goods under a customs procedure; to adopt the procedural rules on the determination of competent customs offices and on the lodging of the customs declaration where other means than electronic data processing techniques are used; the procedural rules on the lodging of a standard customs declaration and on the making available of supporting documents; the procedural rules on the lodging of a simplified declaration and a supplementary declaration; the procedural rules on the lodging of a customs declaration prior to the presentation of goods to customs, the acceptance of the customs declaration and the amendment of the customs declaration after the release of the goods; to specify the procedural rules on centralised clearance and on the waiver from the obligation for goods to be presented in that context; the procedural rules on entry in the declarant’s records; the procedural rules on the disposal of goods; the procedural rules on the provision of information establishing that the conditions for relief from import duty for returned goods are fulfilled and on the provision of evidence that the conditions for relief from import duty for products of sea-fishing and other products taken from the sea are fulfilled; to specify the procedural rules on the exit of goods; to adopt the procedural rules for providing, amending and invalidating the pre-departure information and for lodging, amending and invalidating the exit summary declaration; to adopt procedural rules for refunding the VAT to natural persons not established in the Union; to specify the procedural rules on the notification of arrival of sea-going vessels and aircraft and on the conveyance of goods to the appropriate place; the procedural rules on the lodging, amendment and invalidation of the temporary storage declaration and on the movement of goods in temporary storage; to adopt the procedural rules for granting the authorisation for special procedures, for the examination of the economic conditions and for issuing the opinion of the EU Customs Authority assessing whether granting an authorisation for an inward or outward processing procedure adversely affects the essential interests of Union producers; to adopt the procedural rules on the discharge of a special procedure; the procedural rules on the transfer of rights and obligations and the movement of goods in the context of special procedures; the procedural rules on the use of equivalent goods in the context of special procedures; the procedural rules for the application of the provisions of international transit instruments in the customs territory of the Union; the procedural rules on the placing of goods under the Union transit procedure and on the discharge of that procedure, on the operation of the simplifications of that procedure and on the customs supervision of goods passing through the territory of a third country under the external Union transit procedure; the procedural rules on the placing of goods under the customs warehousing or free zone procedure and for the movement of goods placed in customs warehouse; to adopt measures on the uniform management of tariff quota and tariff ceilings and the management of the customs surveillance of the release for free circulation or export of goods; to adopt measures to determine the tariff classification of goods; to specify the procedural rules on the provision and the verification of the proof of non-preferential origin; to adopt the procedural rules to facilitate the establishment in the Union of the preferential origin of goods; to adopt measures to determine the origin of specific goods; to grant temporary derogation from the rules on preferential origin of goods benefiting from preferential measures adopted unilaterally by the Union; to specify the procedural rules on the determination of the customs value of goods; to specify the procedural rules on the provision, determination of the amount, the monitoring and release of guarantees, as well as on the revocation and cancellation of an undertaking given by a guarantor; to specify the procedural rules regarding temporary prohibitions of the use of comprehensive guarantees; to adopt measures to ensure mutual assistance between the customs authorities in the event of the incurrence of a customs debt; to specify the procedural rules for the repayment and remission of an amount of import or export duty, on the information to be provided to the Commission, and on the decisions to be adopted by the Commission on repayment or remission; to adopt measures for the identification of a crisis and the activation of the crisis management mechanism; to adopt the procedural rules for granting and managing the authorisation for a Member State to enter into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; to adopt decisions on an application by a Member State for the authorisation on entering into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; to specify the design of the measurement framework of the performance of the customs union and the information that Member States should provide to the EU Customs Authority for the purpose of performance measurement; to lay down the rules on currency conversion. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council58 .

(69) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in order to: to adopt the procedural rules on the use of a decision relating to binding information after it ceases to be valid or is revoked; to adopt the procedural rules on the notification to the customs authorities that the taking of such decisions is suspended and on the withdrawal of such suspension; to adopt decisions requesting Member States to revoke decisions relating to binding information; to determine the electronic systems, platforms or environments with which the EU Customs Data Hub federates; to determine the rules for the access to specific services and systems of the EU Customs Data Hub, including the specific rules and conditions for the protection, safety and security of personal data and where that access is limited; measures on the management of the surveillance by customs; to adopt the procedural rules regarding the responsibilities of the joint controllers for the data processing taking place by means of a service or system of the EU Customs Data Hub; to adopt the procedural rules for determining the competent customs offices other than the customs office responsible for the place where the importer or the exporter is established; to adopt measures on the verification of information, examination and sampling of goods, results of the verification and on identification; to adopt measures on the application of post-release controls in respect of operations taking place in more than one Member State; to determine the ports or airports where customs controls and formalities are to be carried out on cabin and hold baggage; to adopt measures to ensure the harmonised application of customs controls and risk management, including the exchange of information, the establishment of common risk criteria and standards and common priority control areas and the evaluation activities in these areas; to specify the procedural rules for the provision and verification of the proof of the customs status of Union goods; to specify the procedural rules for amending and for invalidating the information for placing goods under a customs procedure; to adopt the procedural rules on the determination of competent customs offices and on the lodging of the customs declaration where other means than electronic data processing techniques are used; the procedural rules on the lodging of a standard customs declaration and on the making available of supporting documents; the procedural rules on the lodging of a simplified declaration and a supplementary declaration; the procedural rules on the lodging of a customs declaration prior to the presentation of goods to customs, the acceptance of the customs declaration and the amendment of the customs declaration after the release of the goods; to specify the procedural rules on centralised clearance and on the waiver from the obligation for goods to be presented in that context; the procedural rules on entry in the declarant’s records; the procedural rules on the disposal of goods; the procedural rules on the provision of information establishing that the conditions for relief from import duty for returned goods are fulfilled and on the provision of evidence that the conditions for relief from import duty for products of sea-fishing and other products taken from the sea are fulfilled; to specify the procedural rules on the exit of goods; to adopt the procedural rules for providing, amending and invalidating the pre-departure information and for lodging, amending and invalidating the exit summary declaration; to adopt procedural rules for refunding the VAT to natural persons not established in the Union; to specify the procedural rules on the notification of arrival of sea-going vessels and aircraft and on the conveyance of goods to the appropriate place; the procedural rules on the lodging, amendment and invalidation of the temporary storage declaration and on the movement of goods in temporary storage; to adopt the procedural rules for granting the authorisation for special procedures, for the examination of the economic conditions and for issuing the opinion of the EU Customs Authority assessing whether granting an authorisation for an inward or outward processing procedure adversely affects the essential interests of Union producers; to adopt the procedural rules on the discharge of a special procedure; the procedural rules on the transfer of rights and obligations and the movement of goods in the context of special procedures; the procedural rules on the use of equivalent goods in the context of special procedures; the procedural rules for the application of the provisions of international transit instruments in the customs territory of the Union; the procedural rules on the placing of goods under the Union transit procedure and on the discharge of that procedure, on the operation of the simplifications of that procedure and on the customs supervision of goods passing through the territory of a third country under the external Union transit procedure; the procedural rules on the placing of goods under the customs warehousing or free zone procedure and for the movement of goods placed in customs warehouse; to adopt measures on the uniform management of tariff quota and tariff ceilings and the management of the customs surveillance of the release for free circulation or export of goods; to adopt measures to determine the tariff classification of goods; to specify the procedural rules on the provision and the verification of the proof of non-preferential origin; to adopt the procedural rules to facilitate the establishment in the Union of the preferential origin of goods; to adopt measures to determine the origin of specific goods; to grant temporary derogation from the rules on preferential origin of goods benefiting from preferential measures adopted unilaterally by the Union; to specify the procedural rules on the determination of the customs value of goods; to specify the procedural rules on the provision, determination of the amount, the monitoring and release of guarantees, as well as on the revocation and cancellation of an undertaking given by a guarantor; to specify the procedural rules regarding temporary prohibitions of the use of comprehensive guarantees; to adopt measures to ensure mutual assistance between the customs authorities in the event of the incurrence of a customs debt; to specify the procedural rules for the repayment and remission of an amount of import or export duty, on the information to be provided to the Commission, and on the decisions to be adopted by the Commission on repayment or remission; to adopt measures for the identification of a crisis and the activation of the crisis management mechanism; to adopt the procedural rules for granting and managing the authorisation for a Member State to enter into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; to adopt decisions on an application by a Member State for the authorisation on entering into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; to specify the design of the measurement framework of the performance of the customs union and the information that Member States should provide to the EU Customs Authority for the purpose of performance measurement; to lay down the rules on currency conversion. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council58 .

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58 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

Amendment 38

Proposal for a regulation

Recital 71

Text proposed by the Commission

Amendment

In duly justified cases, where imperative grounds of urgency so require, the Commission should adopt immediately applicable implementing acts relating to: measures to ensure uniform application of customs controls, including the exchange of risk information and analysis, common risk criteria and standards, control measures and common priority control areas; decisions on an application by a Member State for the authorisation on entering into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; measures to determine the tariff classification of goods; measures to determine the origin of specific goods; measures establishing the appropriate method of customs valuation or criteria to be used for determining the customs value of goods in specific situations; measures temporarily prohibiting the use of comprehensive guarantees; the identification of a crisis situation and the adoption of the appropriate to address it or to mitigate its negative effects; decisions to empower a Member State to negotiate and conclude a bilateral agreement with a third country on exchange of information.

(71) In duly justified cases, where imperative grounds of urgency so require, the Commission should adopt immediately applicable implementing acts relating to: measures to ensure uniform application of customs controls, including the exchange of risk information and analysis, common risk criteria and standards, control measures and common priority control areas; decisions on an application by a Member State for the authorisation on entering into negotiations with a third country with a view to concluding a bilateral agreement or arrangement on exchange of information; measures to determine the tariff classification of goods; measures to determine the origin of specific goods; measures establishing the appropriate method of customs valuation or criteria to be used for determining the customs value of goods in specific situations; measures temporarily prohibiting the use of comprehensive guarantees; the identification of a crisis situation and the adoption of the appropriate to address it or to mitigate its negative effects; decisions to empower a Member State to negotiate and conclude a bilateral agreement with a third country on exchange of information. Commons risks criteria should cover notably economic coercion, public morality, public policy or public security, the protection of the health and life of humans, animals or plants, the protection of the environment, the protection of national treasures possessing artistic, historic or archaeological value and the protection of industrial or commercial property and other public interests, including controls on drug precursors, goods infringing certain intellectual property rights and cash.

Amendment 39

Proposal for a regulation

Recital 73

Text proposed by the Commission

Amendment

The provisions referring to the EU Customs Authority, except Article 238, should apply from 1 January 2028. Until that date, the EU Customs Authority should perform its tasks using the existing electronic systems for exchange of customs information developed by the Commission. The provisions on the simplified tariff treatment for distance sales and deemed importer should apply from 1 January 2028.

(73) The provisions referring to the EU Customs Authority, except Article 238, should apply from 1 January 2028. Until that date, the EU Customs Authority should perform its tasks using the existing electronic systems for exchange of customs information developed by the Commission. The provisions on the simplified tariff treatment and deemed importer should apply from 1 January 2028.

Amendment 40

Proposal for a regulation

Recital 74

Text proposed by the Commission

Amendment

In 2032, economic operators may start using, on a voluntary basis, the capabilities of the EU Customs Data Hub. By the end of 2037, 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 2035, 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,

(74) In 2031, economic operators may start using, on a voluntary basis, the capabilities of the EU Customs Data Hub. By the end of 2035, 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 2035, 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,

Amendment 41

Proposal for a regulation

Article 1 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4 a. This legislation shall be designed in line with the goals of the World Trade Organization Trade Facilitation Agreement aim to facilitate trade.

Amendment 42

Proposal for a regulation

Article 2 – paragraph 1

Text proposed by the Commission

Amendment

With a view to achieving a harmonised application of customs controls, for making the customs union act as one and for contributing to the smooth functioning of the internal market, customs authorities shall be responsible for protecting the financial and economic interests of the Union and its Member States, for ensuring security and safety and contributing to the other Union policies protecting citizens and residents, consumers, the environment and the overall supply chains, for protecting the Union from illegal trade, for facilitating legitimate business activity, and for supervising the Union’s international trade in order to contribute to fair and open trade and to the common commercial policy.

With a view to achieving a harmonised application of customs controls, for making the customs union act as one and for contributing to the smooth functioning of the internal market and the Union's open strategic autonomy, customs authorities shall be responsible for protecting the financial and economic interests of the Union and its Member States, for ensuring security and safety and contributing to the other Union policies protecting citizens and residents, consumers, the environment, the companies and the overall supply chains, for protecting the Union from economic coercion, unfair competition, and illegal trade, for facilitating legitimate business activity, economic security, and for supervising the Union’s international trade in order to contribute to fair, regulated, and open trade and to the common commercial policy.

Amendment 43

Proposal for a regulation

Article 2 – paragraph 2 – point d

Text proposed by the Commission

Amendment

protecting the Union from unfair, non-compliant and illegal trade, including through a close monitoring of economic operators and supply chains and a minimum core of customs infringements and penalties;

(d) protecting the Union from unfair, non-compliant and illegal trade, including counterfeit and goods that are not in compliance with other legislation applied by the customs authorities, through a close monitoring of economic operators and supply chains and a minimum core of customs infringements and penalties;

Amendment 44

Proposal for a regulation

Article 2 – paragraph 2 – point e

Text proposed by the Commission

Amendment

supporting legitimate business activity, by maintaining a proper balance between customs controls and facilitation of legitimate trade and simplifying customs processes and procedures.

(e) supporting legitimate business activity, by maintaining a proper balance between customs controls and facilitation of legitimate trade and simplifying customs processes and procedures including through robust risk analysis supported by the EU Customs Data Hub.

Amendment 45

Proposal for a regulation

Article 5 – paragraph 1 – point 2 – point d

Text proposed by the Commission

Amendment

customs provisions contained in international agreements, insofar as they are applicable in the Union;

(d) customs provisions contained in international agreements, insofar as they are applicable in the Union. This includes inter alia the relevant multilateral environmental agreements to which the EU and the Member States are a party, insofar they regulate the conformity of goods;

Amendment 46

Proposal for a regulation

Article 5 – paragraph 1 – point 3

Text proposed by the Commission

Amendment

‘other legislation applied by the customs authorities’ means legislation other than customs legislation applicable to the goods entering, exiting, passing through the customs territory of the Union, or to be placed in the Union market, in the implementation of which the customs authorities are involved;

(3) ‘other legislation applied by the customs authorities’ means legislation other than customs legislation:

a) applicable to the goods entering, exiting, passing through the customs territory of the Union, or to be placed in the Union market, in the implementation of which the customs authorities are involved;

b) justified on grounds of, inter alia, public morality, public policy or public security, the protection of the health and life of humans, animals or plants, the protection of the environment, the protection of national treasures possessing artistic, historic or archaeological value and the protection of industrial or commercial property and other public interests, including controls on drug precursors, goods infringing certain intellectual property rights and cash;

Amendment 47

Proposal for a regulation

Article 5 – paragraph 1 – point 13

Text proposed by the Commission

Amendment

‘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 who is authorised to use the special scheme laid down in Title XII, Chapter 6, Section 4 of Directive 2006/112/EC;

(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 persons authorised to use the special scheme laid down in Title XII, Chapter 6, Section 4 of Directive 2006/112/EC;

Amendment 48

Proposal for a regulation

Article 5 – paragraph 1 – point 18 – point b

Text proposed by the Commission

Amendment

pose a threat to the security and safety of the Union and its citizens and residents; or

(b) pose a threat to the security and safety of the Union and its citizens and residents including their health; or

Amendment 49

Proposal for a regulation

Article 5 – paragraph 1 – point 18 – point c

Text proposed by the Commission

Amendment

prevent the correct application of Union or national measures;

Amendment 50

Proposal for a regulation

Article 5 – paragraph 1 – point 20

Text proposed by the Commission

Amendment

‘risk management’ means the systematic identification of risk, including identifying profiles of risky economic operators, and the implementation of all measures necessary for limiting exposure to risk;

(20) ‘risk management’ means the systematic identification of risk, including identifying profiles of risky economic operators and risky transactions, and the implementation of all measures necessary for limiting exposure to risk;

Amendment 51

Proposal for a regulation

Article 5 – paragraph 1 – point 57

Text proposed by the Commission

Amendment

‘customs debt’ means the obligation on a person to pay the amount of import or export duty which applies to specific goods under the customs legislation in force;

(57) ‘customs debt’ means the obligation on a person to pay the amount of import or export duty and any other charges which applies to specific goods under the customs legislation in force;

Amendment 52

Proposal for a regulation

Article 5 – paragraph 1 – point 59 a (new)

Text proposed by the Commission

Amendment

(59 a) ‘other charges’ means any fees coming on top of custom duties, VAT, customs formalities fees and courier fees;

Amendment 53

Proposal for a regulation

Article 5 – paragraph 1 – point 64

Text proposed by the Commission

Amendment

‘crisis’ means an event or a situation that suddenly endangers the safety, the security, the health and life of the citizens, economic operators and personnel of customs authorities and requires urgent measures as regards the entry, exit or transit of goods.

(64) ‘crisis’ means an event or a situation taking place inside or outside the Union that suddenly endangers the safety, the security, the health and life of the citizens, economic operators and personnel of customs authorities as well as core objectives of other legislation such as the protection of the environment and the climate or avoidance of human rights violations, and requires urgent measures as regards the entry, exit or transit of goods.

Amendment 54

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(64 b) “shipment at risk - to be assessed before release in the internal market” means a shipment to be segregated and examined by national customs authorities upon arrival at destination;

Amendment 55

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(64 c) “incompliant shipment” means a shipment incompliant with EU rules, to be denied for pick up at origin and/or denied for release in the internal market.

Amendment 56

Proposal for a regulation

Article 6 – paragraph 2 – subparagraph 3 a (new)

Text proposed by the Commission

Amendment

Where the customs authorities require additional information from other relevant competent national or international authorities to evaluate the application, they shall inform the applicant and update them within 15 calendar days about their decision.

Amendment 57

Proposal for a regulation

Article 14 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) where the BOI decision is no longer compatible with the Agreement on Rules of Origin established in the World Trade Organisation (WTO) or with the advisory opinions, information, advice and similar acts, concerning the determination of the origin of goods to secure uniformity in the interpretation and application of that Agreement, with effect from the date of their publication in the Official Journal of the European Union.

(b) where the BOI decision is not or no longer compatible with the Agreement on Rules of Origin established in the World Trade Organisation (WTO) or with the advisory opinions, information, advice and similar acts, concerning the determination of the origin of goods to secure uniformity in the interpretation and application of that Agreement, with effect from the date of their publication in the Official Journal of the European Union.

Amendment 58

Proposal for a regulation

Article 23 – paragraph 7

Text proposed by the Commission

Amendment

The customs authorities shall grant benefits resulting from the status of authorised economic operator to persons established in third countries, who fulfil conditions and comply with obligations defined by the relevant legislation of those countries or territories, insofar as those conditions and obligations are recognised by the Union as equivalent to those imposed on authorised economic operators established in the customs territory of the Union. Such a granting of benefits shall be based on the principle of reciprocity unless otherwise decided by the Union, and shall be supported by an international agreement of the Union, or Union legislation in the area of the common commercial policy.

7. The customs authorities shall grant benefits resulting from the status of authorised economic operator to persons established in third countries, who fulfil conditions and comply with obligations defined by the relevant legislation of those countries or territories, insofar as those conditions and obligations are recognised by the Union as equivalent to those imposed on authorised economic operators established in the customs territory of the Union. Such a granting of benefits shall be based on the principle of reciprocity unless otherwise decided by the Union, and shall be supported by an international agreement of the Union, or partnerships to the extent relevant and binding or Union legislation in the area of the common commercial policy. Third country operators shall comply with the criteria in Article 24 (a) to (c) and (e) and, where appropriate, (ea).

Amendment 59

Proposal for a regulation

Article 23 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

8 a. Whenever necessary, the Commission may adopt guidelines with a view to supporting SMEs and MSMEs recognizing the unique challenges faced by SMEs and MSMEs while maintaining the integrity and security of external trade processes in applying to the status of Authorised Economic Operators and Trust and Check traders. Continuous efforts shall be made to simplify and make the procedures more accessible for SMEs and MSMEs, ensuring their vital role in the EU's external trade is facilitated and promoted.

Amendment 60

Proposal for a regulation

Article 24 – paragraph 1 – point e

Text proposed by the Commission

Amendment

with regard to the authorisation referred to in Article 23(1), point (b), appropriate security, safety and compliance standards, adapted to the activity carried out. The standards shall be considered as fulfilled where the applicant demonstrates that he or she maintains appropriate measures to ensure the security and safety of the international supply chain, including in the areas of physical integrity and access controls, logistical processes and handling of specific types of goods, personnel and identification of his or her business partners.

(e) with regard to the authorisation referred to in Article 23(1), point (b), appropriate security, safety standards, adapted to the activity carried out. The standards shall be considered as fulfilled where the applicant demonstrates that he or she maintains appropriate measures to ensure the security and safety of the international supply chain, including in the areas of physical integrity and access controls, logistical processes and handling of specific types of goods, personnel and identification of his or her business partners;

Amendment 61

Proposal for a regulation

Article 24 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

(e a) the compliance by the applicant of the relevant other legislation.

Amendment 62

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

The Commission shall adopt, by means of implementing acts, the modalities for the application of the criteria referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

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

Amendment 63

Proposal for a regulation

Article 25 – paragraph 1

Text proposed by the Commission

Amendment

An importer or exporter, who is resident or registered in the customs territory of the Union, meets the criteria set out in paragraph 3 and has conducted regular customs operations in the course of that person’s business for at least 3 years, may apply for the status of Trust and Check trader to the customs authority of the Member State where that person is established.

1. An economic operator, who is resident or registered in the customs territory of the Union, meets the criteria set out in paragraph 3 and has conducted regular customs operations in the course of that person’s business for at least 3 years, may apply for the status of Trust and Check trader to the customs authority of the Member State where that person is established.

Amendment 64

Proposal for a regulation

Article 25 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

The customs authorities shall grant the status of Trust and Check trader to a person who meets all the following criteria:

3. The customs authorities shall grant the status of Trust and Check trader to an importer or exporter who has already obtained AEO status or another person if they meet all the following criteria:

Amendment 65

Proposal for a regulation

Article 25 – paragraph 3 – point e

Text proposed by the Commission

Amendment

appropriate security, safety and compliance standards, adapted to the type and size of the activity carried out. The standards shall be considered as fulfilled where the applicant demonstrates that he or she maintains appropriate measures to ensure the security and safety of the international supply chain, including in the areas of physical integrity and access controls, logistical processes and handling of specific types of goods, personnel and identification of his or her business partners;

(e) appropriate security, safety and compliance standards, adapted to the type and size of the activity carried out. The applicant shall be required to participate in training provided by the competent authorities related to the type of activity. The standards shall be considered as fulfilled where the applicant demonstrates that he or she maintains appropriate measures to ensure the security and safety of the international supply chain, including in the areas of physical integrity, health and environmental standards, compliance with relevant other legislation and access controls, logistical processes and handling of specific types of goods, personnel and identification of his or her business partners;

Amendment 66

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 every 2 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.

Amendment 67

Proposal for a regulation

Article 25 – paragraph 6 – subparagraph 1

Text proposed by the Commission

Amendment

Where a Trust and Check trader is suspected of involvement in fraudulent activity in relation to its economic or business activity, its status shall be suspended.

Where a Trust and Check trader is suspected of involvement in fraudulent activity in relation to its economic or business activity, or of releasing goods that are not compliant with relevant legislation and other relevant EU legislation in the customs territory, its status shall be suspended. This suspension shall be notified in the EU Customs Data Hub.

Amendment 68

Proposal for a regulation

Article 25 – paragraph 8

Text proposed by the Commission

Amendment

8. The Trust and Check traders shall enjoy more facilitations than other economic operators in respect of customs controls according to the authorisation granted, including fewer physical and document-based controls. The status of Trust and Check trader shall be taken into account favourably for customs risk management purposes. The EU Customs Authority shall ensure effective collaboration and coordination between the competent authorities of the Member States. It shall also ensure the consistent implementation of customs advantages linked to the status of Authorized Economic Operator and Trust and Check trader throughout the customs union.

Amendment 69

Proposal for a regulation

Article 25 – paragraph 11 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

The Commission shall adopt, by means of implementing acts:

The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by laying down:

Amendment 70

Proposal for a regulation

Article 25 – paragraph 11 – subparagraph 2

Text proposed by the Commission

Amendment

Those implementing acts shall be adopted in accordance with the examination procedure referred to Article 262(4).

deleted

Amendment 71

Proposal for a regulation

Article 29 – paragraph 1 – point a

Text proposed by the Commission

Amendment

allow for the electronic implementation of customs legislation;

(a) facilitate the electronic implementation of customs legislation;

Amendment 72

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(c a) ensure compliance with the provisions of Regulation (EU) XXXX/XXX of the European Parliament and of the Council laying down measures for a high common level of cybersecurity at the institutions, bodies, offices and agencies of the Union;

Amendment 73

Proposal for a regulation

Article 29 – paragraph 1 – point d

Text proposed by the Commission

Amendment

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 and ensure 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 to the extent artificial intelligence can facilitate certain functionalities while preserving ethical standards in full compliance with the EU acquis;

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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.]

Amendment 74

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(h a) support the compliance with the requirements of the other relevant EU legislation, by facilitating access to relevant information related to the implementation and enforcement of such legislation;

Amendment 75

Proposal for a regulation

Article 29 – paragraph 5 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

the technical arrangements for maintaining and employing the electronic systems that the Member States and the Commission have developed pursuant to Article 16(1) of Regulation (EU) No 952/2013;

(a) the technical arrangements for maintaining and employing the electronic systems that the Member States and the Commission have developed pursuant to Article 16(1) of Regulation (EU) No 952/2013 and pursuant to Regulation (EU) No 2022/2399 in relation with Regulation (EU) [laying down measures for a high common level of cybersecurity at the institutions, bodies, offices and agencies of the Union] and with Directive (EU) 2022/2555, including guidelines issued by the European Union Agency for Cybersecurity (ENISA);

Amendment 76

Proposal for a regulation

Article 30 – paragraph 1

Text proposed by the Commission

Amendment

Member States may develop applications necessary to connect to the EU Customs Data Hub in order to provide data to and process data from the EU Customs Data Hub.

1. Member States shall develop applications necessary to connect to the EU Customs Data Hub in order to provide data to and process data from the EU Customs Data Hub.

Amendment 77

Proposal for a regulation

Article 30 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. Member States shall ensure that the applications referred to in paragraph 1 comply with the provisions of Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (NIS 2 Directive) in particular in regard to cybersecurity risk-management measures. Member States shall cover the customs infrastructure in their national cybersecurity strategy.

Amendment 78

Proposal for a regulation

Article 30 – paragraph 2

Text proposed by the Commission

Amendment

Member States may request the EU Customs Authority to develop the applications referred to in paragraph 1. In that case, those Member States shall finance the development.

2. Member States may request the EU Customs Authority to develop the applications that are necessary to comply with the requirement referred to in paragraph 1. In that case, those Member States shall finance the development.

Amendment 79

Proposal for a regulation

Article 31 – paragraph -1 (new)

Text proposed by the Commission

Amendment

-1 The processing of personal data and other data in the EU Customs Data Hub shall be without prejudice to Regulation (EU) 2016/679 and shall aim at safeguarding sensitive data of economic operators, throughout the provisions of the present Article.

Amendment 80

Proposal for a regulation

Article 31 – paragraph 1 – point b

Text proposed by the Commission

Amendment

demonstrate that person’s compliance with customs legislation and other legislation applied by customs authorities.

(b) demonstrate that person’s compliance with customs legislation and other legislation applied by customs authorities for which purpose the identity of the manufacturer of the goods is essential.

Amendment 81

Proposal for a regulation

Article 31 – paragraph 2 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

A customs authority 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 the following purposes:

A customs authority shall process data, including personal and commercially sensitive data such as the identity of the manufacturer of a product, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary for the following purposes:

Amendment 82

Proposal for a regulation

Article 31 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

The EU Customs Authority 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 the following purposes:

3. The EU Customs Authority may process data, including personal and commercially sensitive data such as the identity of the manufacturer of a product, stored or otherwise available in the EU Customs Data Hub exclusively and to the extent necessary for the following purposes:

Amendment 83

Proposal for a regulation

Article 31 – paragraph 4 – point h a (new)

Text proposed by the Commission

Amendment

(h a) to contribute to the improvement of the enforcement of other relevant Union legislation.

Amendment 84

Proposal for a regulation

Article 31 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

7 a. The national competent authorities as designated under other relevant legislation may access data, including personal and commercially sensitive data such as the identity of the manufacturer or a product, stored or otherwise available in the EU Customs Data Hub exclusively and to the extent necessary to ensure that non-compliant products do not enter the Union. The Commission shall lay down, by means of implementing acts pursuant to paragraph 14 of this Article, rules and modalities for accessing or storing such data.

Amendment 85

Proposal for a regulation

Article 31 – paragraph 8

Text proposed by the Commission

Amendment

The competent authorities as defined in Article 3, point (3), of Regulation (EU) 2017/625 of the European Parliament and of the Council67 may access data, including personal and commercially sensitive data, store or otherwise available in the EU Customs Data Hub exclusively and to the extent necessary for enforcing Union legislation governing the placing on the market or the safety of food, feed and plants and for cooperating with customs authorities to minimise the risks that non-compliant products enter the Union and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

8. The competent authorities as defined in Article 3, point (3), of Regulation (EU) 2017/625 of the European Parliament and of the Council67 may access data, including personal and commercially sensitive data, store or otherwise available in the EU Customs Data Hub exclusively and to the extent necessary for enforcing Union legislation governing the placing on the market or the safety of food, feed and plants and for cooperating with customs authorities to ensure that non-compliant goods do not enter the Union, and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

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67 Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (Official Controls Regulation)(OJ L 95, 7.4.2017, p. 1).

Amendment 86

Proposal for a regulation

Article 31 – paragraph 11 a (new)

Text proposed by the Commission

Amendment

11 a. Domestic Advisory Groups, under Free Trade Agreements, or other relevant stakeholders will provide information to the EU Customs Data Hub relevant to the applicability or circumvention of unilateral trade measures. This information shall be verified and submitted prior to the annual meeting of the Customs Advisory Board. The Commission shall specify, by means of an implementing act, the rules for determining the relevant stakeholders, for transmitting the information to the EU Customs Data Hub and for its prior verification. This implementing act shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Amendment 87

Proposal for a regulation

Article 31 – paragraph 11 b (new)

Text proposed by the Commission

Amendment

11 b. Without prejudice to Articles 32 and 38, any natural or legal person residing or having its registered office in a Member State may request access to non-personal or non-commercially sensitive data, stored or otherwise available in the EU Customs Data Hub under the conditions specified in Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents.

Amendment 88

Proposal for a regulation

Article 31 – paragraph 11 c (new)

Text proposed by the Commission

Amendment

11 c. Relevant data may be made available to third countries’ customs and market surveillance authorities to allow cooperation between EU and third countries’ customs authorities only to the extent necessary to ensure compliance of imports with EU law.

Amendment 89

Proposal for a regulation

Article 31 – paragraph 14 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

The Commission shall lay down, by means of implementing acts, rules and modalities for accessing or processing data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub by the authorities referred to in paragraphs 6 to 11, as well as confidentiality and accountability rules for all persons with access to the data. The rules shall ensure that the information to be provided in the EU Customs Data Hub is correct and reliable. In determining those rules and modalities, the Commission shall, for each authority or category of authorities:

Amendment 90

Proposal for a regulation

Article 31 – paragraph 14 – subparagraph 1 – point d

Text proposed by the Commission

Amendment

consider the need for the authority concerned to designate a specific contact point, person or persons or to provide additional safeguards;

(d) request for the authority concerned to designate a specific contact point, person or persons or to provide additional safeguards;

Amendment 91

Proposal for a regulation

Article 32 – paragraph 1 – point b

Text proposed by the Commission

Amendment

data subjects who are occasionally involved in activities covered by the customs legislation or by other legislation applied by the customs authorities;

(b) data subjects who are economic operators that are occasionally involved in activities covered by the customs legislation or by other legislation applied by the customs authorities;

Amendment 92

Proposal for a regulation

Article 32 – paragraph 1 – point c

Text proposed by the Commission

Amendment

data subjects whose personal information is contained in the supporting documents referred to in Article 40, or in any additional evidence required for the fulfilment of the obligations imposed by customs legislation and other legislation applied by the customs authorities;

(c) data subjects who are economic operators whose personal information is contained in the supporting documents referred to in Article 40, or in any additional evidence required for the fulfilment of the obligations imposed by customs legislation and other legislation applied by the customs authorities;

Amendment 93

Proposal for a regulation

Article 32 – paragraph 1 – point d

Text proposed by the Commission

Amendment

data subjects whose personal data is contained in the data collected for risk management purposes pursuant to Article 50(3), point (a);

(d) data subjects who are economic operators whose personal data is contained in the data collected for risk management purposes pursuant to Article 50(3), point (a);

Amendment 94

Proposal for a regulation

Article 37 – paragraph 3

Text proposed by the Commission

Amendment

Where authorities other than customs authorities or Union bodies make use of electronic means established by, used to achieve the objectives of, or referred to in Union legislation, the cooperation may take place by means of interoperability of those electronic means with the EU Customs Data Hub.

3. Where authorities other than customs authorities or Union bodies make use of electronic means established by, used to achieve the objectives of, or referred to in Union legislation, the cooperation may take place by means of interoperability of those electronic means with the EU Customs Data Hub. Such interoperability may also be allowed for third countries’ relevant authorities with a view to cooperation with EU authorities only to the extent necessary to ensure compliance of imports with EU law.

Amendment 95

Proposal for a regulation

Article 37 – paragraph 4

Text proposed by the Commission

Amendment

Where authorities other than customs authorities do not make use of electronic means established by, used to achieve the objectives of, or referred to in, Union legislation, those authorities may use the specific services and systems of the EU Customs Data Hub in accordance with Article 31.

4. Where authorities other than customs authorities, do not make use of electronic means established by, used to achieve the objectives of, or referred to in, Union legislation, those authorities may use the specific services and systems of the EU Customs Data Hub in accordance with Article 31. Such services and systems may also be allowed for third countries’ relevant authorities with a view to cooperation with EU authorities only to the extent necessary to ensure compliance of imports with EU law.

Amendment 96

Proposal for a regulation

Article 39 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. A comprehensive and user-friendly digital interface shall also provide access to all information related to autonomous measures, including tariffs, quotas, sanctions, and embargoes with the aim of enhancing companies' compliance with these measures. This shall also promote greater coherence among various autonomous measures.

Amendment 97

Proposal for a regulation

Article 50 – paragraph 3 – point a

Text proposed by the Commission

Amendment

collecting, processing, exchanging and analysing relevant data available in the EU Customs Data Hub and from other sources, including relevant data from authorities other than customs authorities;

(a) to the extent necessary collecting, processing, exchanging and analysing relevant data available in the EU Customs Data Hub and from other sources, including relevant data from authorities other than customs authorities;

Amendment 98

Proposal for a regulation

Article 51 – paragraph 1

Text proposed by the Commission

Amendment

The Commission may establish common priority control areas and common risk criteria and standards for any type of risk, including but not limited to risks relating to financial interests.

1. The Commission shall establish common priority control areas and common risk criteria and standards for any type of risk, including but not limited to risks relating to financial interests.

Amendment 99

Proposal for a regulation

Article 51 – paragraph 2

Text proposed by the Commission

Amendment

Without prejudice to paragraph 6, point (f), of this Article and to Article 43, the Commission may identify specific areas in the domain of other legislation applied by the customs authorities that warrant priority treatment for customs risk management and controls.

2. Without prejudice to paragraph 6, point (f), of this Article and to Article 43, the Commission shall identify specific areas in the domain of other relevant legislation applied by the customs authorities that warrant priority treatment for customs risk management and controls, including mandatory customs controls. Such identification shall be based on the identification or high risk transactions as provided in the framework of the other relevant legislation, or on any other relevant sources.

Amendment 100

Proposal for a regulation

Article 51 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. For the purpose of paragraphs 1 and 2, the Customs Advisory Board is entitled to:

(a) inform the Commission of substantiated concerns that may guide the establishment of temporary and country-specific priority control areas for the purposes of paragraphs 1 and 2;

(b) contribute to the identification of the specific areas in the domain of other legislation for the purpose of paragraphs 1 and 2.

Amendment 101

Proposal for a regulation

Article 51 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

The Commission may:

3. The Commission shall as necessary:

Amendment 102

Proposal for a regulation

Article 51 – paragraph 4

Text proposed by the Commission

Amendment

For the purposes referred to in paragraphs 1 to 3, the Commission may collect, process and analyse data available in the EU Customs Data Hub and from other sources, including from authorities other than customs authorities.

4. For the purposes referred to in paragraphs 1 to 3, the Commission may collect, process and analyse data available in the EU Customs Data Hub and from other sources, including from authorities other than customs authorities, including from third countries, from the secretariats under relevant Multilateral Environmental Agreements and the Customs Advisory Board.

Amendment 103

Proposal for a regulation

Article 53 – paragraph 1

Text proposed by the Commission

Amendment

All risk information, signals, risk analysis results, control recommendations, control decisions and control results, shall be recorded in the operational process to which they relate and in the EU Customs Data Hub, irrespective of whether they were based on national or common risk analysis, or whether they were based on random selection. Customs authorities shall share risk information with each other, with the EU Customs Authority and with the Commission.

1. All risk information, signals, risk analysis results, control recommendations, control decisions and control results, shall be recorded in the operational process to which they relate and in the EU Customs Data Hub, irrespective of whether they were based on national or common risk analysis, or whether they were based on random selection. Customs authorities shall share risk information with each other, with the EU Customs Authority and with the Commission, and where appropriate, with the secretariats under Multilateral Environmental Agreements provided that personal data are protected.

Amendment 104

Proposal for a regulation

Article 54 – paragraph 1

Text proposed by the Commission

Amendment

The Commission, in cooperation with the EU Customs Authority and the customs authorities, shall evaluate the implementation of risk management in order to continuously improve its operational and strategic effectiveness and efficiency at least once every 2 years; the Commission may in addition arrange evaluation activities to be carried out where it considers necessary, and on an ongoing basis.

1. The Commission, in cooperation with the EU Customs Authority and the customs authorities, shall evaluate the implementation of risk management in order to continuously improve its operational and strategic effectiveness and efficiency at least once every two years. The Commission shall make this evaluation available to the Executive Board of the EU Customs Authority. The Commission may in addition arrange evaluation activities to be carried out where it considers necessary, and on an ongoing basis.

Amendment 105

Proposal for a regulation

Article 60 – paragraph 1

Text proposed by the Commission

Amendment

The customs authorities responsible for placing the goods in a customs procedure in accordance with Article 42(3) shall decide on the release of the goods taking into account the result of the risk analysis of the data provided by the importer or exporter and, where applicable, the results of any control.

1. The customs authorities responsible for placing the goods in a customs procedure in accordance with Article 42(3) shall decide on the release of the goods based on the result of the risk analysis of the data provided by the importer or exporter and, where applicable, the results of any control and based on risk assessments as provided for in Article 51.

Amendment 106

Proposal for a regulation

Article 75 – paragraph 1

Text proposed by the Commission

Amendment

Where, for any reason, goods cannot be maintained in temporary storage, the customs authorities shall without delay take all measures necessary to dispose of the goods in accordance with Articles 76, 77 and 78.

Where, for any reason, goods cannot be maintained in temporary storage, the customs authorities shall without delay take all measures necessary, if:

(i) the products are perishable, to donate the products concerned to charitable organisations or organisations that benefit public interest,

(ii) the products are not perishable, to recycle the products concerned.

Where points (i) and (ii) are not possible, the customs authorities shall dispose of the respective products in accordance with national law consistent with Union law.

Amendment 107

Proposal for a regulation

Article 76 – paragraph 1

Text proposed by the Commission

Amendment

Where the customs authorities have reasonable grounds for so doing, they may require goods which have been presented to them to be destroyed and shall inform the importer, exporter and the holder of the goods accordingly. The costs of the destruction shall be borne by the importer or the exporter.

1. Where the customs authorities have reasonable grounds for so doing, they may require goods which have been presented to them to be donated, recycled or otherwise destroyed as provided for in Article 75 and shall inform the importer, exporter and the holder of the goods accordingly. The costs of the destruction shall be borne by the importer or the exporter.

Amendment 108

Proposal for a regulation

Article 76 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall specify, by means of implementing acts, the procedure for the destruction of goods. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

4. The Commission shall specify, by means of implementing acts, the procedure for the destruction of goods which shall take into account the safety of customs officers for the persons performing the destruction. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Amendment 109

Proposal for a regulation

Article 80 – paragraph 2

Text proposed by the Commission

Amendment

The advance cargo information shall include at least the importer responsible for the goods, the unique reference for the consignment, the consignor, the consignee, a description of the goods, the tariff classification, the value, the data on the route and the nature and identification of the means of transport bringing the goods and the transportation cost. The advance cargo information shall be provided before the goods arrive to the customs territory of the Union.

2. The advance cargo information shall include at least the importer responsible for the goods, the unique reference for the consignment, the consignor, the consignee, a description of the goods, the tariff classification, the value, the data on the route, including the final destination and the nature and identification of the means of transport bringing the goods and the transportation cost. The advance cargo information shall be provided before the goods arrive to the customs territory of the Union. More data may be requested for entry purposes by the customs authorities or the EU Customs Authority.

Amendment 110

Proposal for a regulation

Article 81 – paragraph 1

Text proposed by the Commission

Amendment

Without prejudice to the activities of the EU Customs Authority set out in Title XII, the customs office of first entry shall, within specific time-limits, ensure that a risk analysis is carried out, primarily for security and safety purposes and, where possible, for other purposes, on the basis of the advance cargo information and other information provided or made available through the EU Customs Data Hub and shall take the necessary measures based on the results of that risk analysis.

1. Without prejudice to the activities of the EU Customs Authority set out in Title XII, the customs office of first entry shall, within adequate and risk-proportionate time-limits, ensure that a risk analysis is carried out, for security and safety purposes, as well as for other compliance purposes, on the basis of the advance cargo information and other information provided or made available through the EU Customs Data Hub and shall take the necessary measures based on the results of that risk analysis.

Amendment 111

Proposal for a regulation

Article 86 – paragraph 5

Text proposed by the Commission

Amendment

5. Non-Union goods in temporary storage shall be placed under a customs procedure no later than 3 days after the notification of their arrival or no later than 6 days after the notification of their arrival in the case of an authorised consignee as referred to in Article 116(4), point (b), unless the customs authorities require the goods to be presented. In exceptional cases, that time limit may be extended.

5. Non-Union goods in temporary storage shall be placed under a customs procedure 90 days following their presentation to customs, unless the customs authorities require the goods to be presented. In exceptional cases, that time limit may be extended.

Amendment 112

Proposal for a regulation

Article 88 – paragraph 3 – point a

Text proposed by the Commission

Amendment

the required data has been provided or made available to customs authorities, which must include at least the importer responsible for the goods, the seller, the buyer, the manufacturer, the product supplier where this is different from the manufacturer, the responsible economic operator in the Union pursuant to Article 4 of Regulation (EU) 2019/1020 and Art. 16 of Regulation of the European Parliament and of the Council (EU) 2023/XXXX69 , the value, the origin, the tariff classification and a description of the goods, the unique reference of the consignment and its location, and the list of relevant other legislation applied by the customs authorities;

(a) the required compliant data has been provided or made available to customs authorities. The required data must include at least the importer responsible for the goods, the seller, the buyer, the manufacturer, the product supplier where this is different from the manufacturer, in case of finished or semi-finished goods the origin of components in case this is relevant for the enforcement of other relevant legislation and in case different from the origin of the goods to be placed, the responsible economic operator in the Union pursuant to Article 4 of Regulation (EU) 2019/1020 and Art. 16 of Regulation of the European Parliament and of the Council (EU) 2023/XXXX69 , the value, the origin, the tariff classification and a description of the goods, the unique reference of the consignment and its location, and the list of relevant other legislation applied by the customs authorities;

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69 Regulation of the European Parliament and of the Council (EU) No 2023/… of ../../2023 on general product safety, amending Regulation (EU) No 1025/2012 of the European Parliament and of the Council, and repealing Council Directive 87/357/EEC and Directive 2001/95/EC of the European Parliament and of the Council (OJ L… ).

Amendment 113

Proposal for a regulation

Article 88 – paragraph 3 – point d

Text proposed by the Commission

Amendment

(d) the goods comply with the relevant other legislation applied by the customs authorities.

(d) it has been ascertained that the goods comply with the relevant other legislation applied by the customs authorities.

Amendment 114

Proposal for a regulation

Article 95 – paragraph 1

Text proposed by the Commission

Amendment

1. Exporters wishing to take goods out of the customs territory of the Union shall provide minimum pre-departure information within a specific time-limit before the goods are taken out of the customs territory of the Union.

1. Exporters wishing to take goods out of the customs territory of the Union shall provide minimum pre-departure information within an adequate and risk-proportionate time-limit before the goods are taken out of the customs territory of the Union.

Amendment 115

Proposal for a regulation

Article 95 – paragraph 3 – point f a (new)

Text proposed by the Commission

Amendment

(f a) information allowing the identification of the nature of the goods and their customs classification with a view to compliance with other relevant legislation.

Amendment 116

Proposal for a regulation

Article 97 – paragraph 1

Text proposed by the Commission

Amendment

1. Without prejudice to the activities of the EU Customs Authority set out in Title IV, the customs office of export shall, within a specific time-limit, ensure that a risk analysis is carried out, primarily for security and safety purposes and, where possible, for other purposes, on the basis of the pre-departure information and other information provided or made available through the EU Customs Data Hub and shall take the necessary measures based on the results of that risk analysis.

1. Without prejudice to the activities of the EU Customs Authority set out in Title IV, the customs office of export shall, within an adequate and risk-proportionate time-limit, ensure that a risk analysis is carried out, for security and safety purposes as well as for other compliance purposes, on the basis of the pre-departure information and other information provided or made available through the EU Customs Data Hub and shall take the necessary measures based on the results of that risk analysis.

Amendment 117

Proposal for a regulation

Article 118 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) the goods comply with the other legislation applied by the customs authorities.

(b) it has been ascertained that the goods comply with the other legislation applied by the customs authorities.

Amendment 118

Proposal for a regulation

Article 132 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) the goods comply with the relevant other legislation applied by the customs authorities.

(f) it has been ascertained that the goods comply with the relevant other legislation applied by the customs authorities.

Amendment 119

Proposal for a regulation

Article 135 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) the goods comply with the relevant the other legislation applied by the customs authorities.

(e) it has been ascertained that the goods comply with the relevant the other legislation applied by the customs authorities.

Amendment 120

Proposal for a regulation

Article 149 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. In case the reasonable doubt persists as to the authenticity of the document in question or the real origin of the products, the customs authorities dealing with the arrival of the goods concerned shall refuse entitlement to the preferences and inform the customs authorities of the third country concerned and shall reject the declaration. The refusal shall be notified in the EU Customs Data Hub.

Amendment 121

Proposal for a regulation

Article 150 – paragraph 10

Text proposed by the Commission

Amendment

10. Where the importer has opted to apply the simplified tariff treatment for distance sales, the importer may not benefit from the measures referred to in Article 145(2), points (d) and (e), or from non-tariff preferential measures.

10. Even if the importer has opted to apply the simplified tariff treatment for distance sales, the measures referred to in Article 145(2), points (d) and (e), or from non-tariff preferential measures apply.

Amendment 122

Proposal for a regulation

Article 159 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

Where the information provided or made available for the purpose of the procedures referred to in paragraph 1 leads to all or part of the import duty not being collected, the person who provided that information and who knew, or who ought reasonably to have known, that such information was false shall also be a debtor.

Amendment 123

Proposal for a regulation

Article 159 – paragraph 3

Text proposed by the Commission

Amendment

3. Where Title XII, Chapter 6, Section 4 of Directive 2006/112/EC applies to the distance sales of goods to be imported from third countries or territories to a customer in the customs territory of the Union, the deemed importer shall incur a customs debt when the payment for the distance sale is accepted and shall be the debtor.

Amendment 124

Proposal for a regulation

Article 201 – paragraph 1

Text proposed by the Commission

Amendment

1. The EU Customs Authority shall contribute to the correct application of restrictive measures adopted in accordance with Article 215 TFEU by monitoring their implementation in the are falling under its competence and, subject to review and authorisation by the Commission, by providing appropriate guidance to the customs authorities.

1. The EU Customs Authority shall contribute to the correct application of restrictive measures adopted in accordance with Article 215 TFEU by monitoring their implementation in the areas falling under its competence and, subject to review and authorisation by the Commission, by providing appropriate guidance to the customs authorities.

Amendment 125

Proposal for a regulation

Article 203 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) a crisis at the border of one or more Member States that has an impact on the customs processes;

(a) a crisis at the border of one or more Member States that may have an impact on the customs processes;

Amendment 126

Proposal for a regulation

Article 203 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

(b a) a collaboration framework between customs authorities and other Union institutions, bodies, offices and agencies in areas where their activities relate to the management of the customs union.

Amendment 127

Proposal for a regulation

Article 204 – paragraph 2

Text proposed by the Commission

Amendment

2. The EU Customs Authority shall coordinate and supervise the application and implementation of the appropriate measures and arrangements by the customs authorities and shall report back on the results of this implementation to the Commission.

Amendment 128

Proposal for a regulation

Article 204 – paragraph 3

Text proposed by the Commission

Amendment

3. The EU Customs Authority shall set up a crisis response cell that is permanently available throughout the crisis.

3. The EU Customs Authority shall set up a crisis response cell that is permanently available throughout the crisis. The Chair of the Customs Advisory Board will participate in the meetings of the cell.

Amendment 129

Proposal for a regulation

Article 207 – paragraph 2 – point a

Text proposed by the Commission

Amendment

the EU Customs Authority shall contribute to the operational management of the customs union, and thereby coordinate and supervise operational cooperation between customs authorities and pool and provide technical expertise to increase efficiency and delivery of results;

(a) the EU Customs Authority shall contribute to the operational management of the customs union, and thereby coordinate and supervise operational cooperation between customs authorities and pool and provide technical expertise guidance in best practices to increase efficiency and delivery of results;

Amendment 130

Proposal for a regulation

Article 207 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

(d a) the EU Customs Authority shall cooperate with other Union institutions, bodies, offices and agencies in areas where their activities relate to the management of the customs union.

Amendment 131

Proposal for a regulation

Article 207 – paragraph 2 – point d b (new)

Text proposed by the Commission

Amendment

(d b) the EU Customs Authority shall actively contribute to the effective performance by customs authorities of their mission to support legitimate business activity, by maintaining a proper balance between customs controls, the facilitation of legitimate trade, the protection from illegal trade and the simplification of customs processes and procedures fully in line with this Regulation.

Amendment 132

Proposal for a regulation

Article 207 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. Without prejudice to the respective responsibilities of the Commission, of ENISA and of the Member States, the EU Customs Authority shall make sure the EU Customs Data Hub is adequately protected against potential interference activities and cyberattacks and with this regard, help raise awareness among national customs authorities.

Amendment 133

Proposal for a regulation

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

Text proposed by the Commission

Amendment

-a support national customs authorities in their fight against the circumvention of customs legislation and other relevant legislation by fraudulent economic operators;

Amendment 134

Proposal for a regulation

Article 208 – paragraph 3 – point c

Text proposed by the Commission

Amendment

prepare the minimum common training content for customs officers in the Union and monitor its use by customs authorities;

(c) prepare the minimum common training content for customs officers in the Union and where appropriate in liaison with other relevant EU or international institutions and monitor its use by customs authorities;

Amendment 135

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(c a) prepare the minimum common training content for the Trust and Check traders, in accordance with Article 25(3)(e);

Amendment 136

Proposal for a regulation

Article 208 – paragraph 3 – point c b (new)

Text proposed by the Commission

Amendment

(c b) provide support and guidance to SMEs and MSMEs, including through guidelines and manuals, to facilitate the understanding of customs legislation and procedures and to meet the criteria of the Trust and Check traders program set out in Article 25(3);

Amendment 137

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(i a) to support the enforcement of relevant provisions of the Unfair Commercial Practices Directive;

Amendment 138

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(i a) supervise and coordinate the application of the cooperation framework in accordance with Article 242(1);

Amendment 139

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(i b) cooperate with the secretariats of the relevant Multilateral Environmental Agreements where relevant;

Amendment 140

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(l a) proactively foster a common approach of customs in view of a revision of the Harmonised System with a view of supporting the European Green Deal and trade in green goods;

Amendment 141

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(l b) provide input to the Commission on legislative proposals that may have potential consequences when it comes to the mission, role or functioning of the customs;

Amendment 142

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(l c) facilitate among national customs authorities an agreement on a common methodology and reliable data in view of calculating the customs revenue gap;

Amendment 143

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(l d) ensure harmonised and unified data requirements on economic operators.

Amendment 144

Proposal for a regulation

Article 208 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. By 2029 and after consultation of the EU Customs Authority, the Commission shall publish a report assessing the consistency between this Regulation and the modalities established by other legislations for their own objective, with accompanying proposals if needed. The report shall be forwarded to the European Parliament and the Council.

Amendment 145

Proposal for a regulation

Article 211 – paragraph 1 – point d a (new)

Text proposed by the Commission

Amendment

(d a) a Customs Advisory Board who shall exercise the functions set out in Article 221a.

Amendment 146

Proposal for a regulation

Article 212 – paragraph 1

Text proposed by the Commission

Amendment

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.

Amendment 147

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

Amendment 148

Proposal for a regulation

Article 212 – paragraph 5

Text proposed by the Commission

Amendment

The term of office for members and their alternates shall be 4 years. That term shall be extendable.

5. The term of office for members and their alternates shall be 4 years. That term shall be extendable twice.

Amendment 149

Proposal for a regulation

Article 212 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

5 a. The Chair of the Customs Advisory Board referred to in Article 221a shall participate with observer status in the Management Board.

Amendment 150

Proposal for a regulation

Article 214 – paragraph 4

Text proposed by the Commission

Amendment

4. The Management Board may invite any person whose opinion may be of interest to attend its meetings as an observer.

4. The Management Board shall invite any person whose opinion may be of interest to attend its meetings as an observer, namely representatives designated to the Customs Advisory Board as defined in Article 215(1)(v a).

Amendment 151

Proposal for a regulation

Article 215 – paragraph 1 – point v a (new)

Text proposed by the Commission

Amendment

(v a) establish an advisory body representing the full range of interested parties affected by the work of the EU Customs Authority established in the Union, which it shall consult prior to making decisions. These interested parties shall include customs agents established in the EU. The Management Board shall not, in any case, be bound by the opinion of the advisory body.

Amendment 152

Proposal for a regulation

Article 215 – paragraph 1 – point v a (new)

Text proposed by the Commission

Amendment

(v a) Participation of Third Countries Representatives as observers in the Customs Advisory Board may be possible when conditions for such participation are established in EU Agreements and when reciprocity is met.

Amendment 153

Proposal for a regulation

Article 217 – paragraph 4

Text proposed by the Commission

Amendment

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.

4. The Executive Board shall be composed of the two representatives of the Commission to the Management Board, three other members appointed by the Management Board from among its members with the right to vote and the chair of the Customs Advisory Group referred to in Article 221a. 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.

Amendment 154

Proposal for a regulation

Title XII – Chapter 3 – Section 3 a (new)

Text proposed by the Commission

Amendment

SECTION 3 a (new)

THE CUSTOMS ADVISORY BOARD

Article 221 a (new)

Customs Advisory Board

1. A Customs Advisory Board is established to assist the Executive Board and the EU Customs Authority.

2. The Customs Advisory Board is tasked to:

(a) give input on the customs dimensions of other legislation;

(b) send early warnings in case of a substantiated concern that a certain goods imported in the EU is likely to infringe customs legislation or other legislation.

3. The Customs Advisory Board (CAB) shall be composed of 10 representatives of civil society organisations and business in a balanced manner, representing employers federation, including at least one SME federation, pan-European consumers organisations and trade unions and human rights and environment civil social organisations. The CAB shall adopt its rules of procedure 6 months after the appointment of its members. The Commission shall ensure the secretariat. The CAB shall take its decisions on a consensual basis. The mandate of the members shall be 48 months and may be extendable.

4. The Customs Advisory Board shall hold at least one ordinary meeting every six months. In addition, it shall meet at the request of the EU Customs Authority or Executive Board.

5. Domestic Advisory Groups (DAG) established under FTAs shall provide input relevant for early warnings on illegal trade or other risks of circumvention of existing EU legislation. The information by DAGs may be provided up to two weeks prior to the ordinary meeting of the CAB through the specific platform in the EU Customs Data Hub.

Amendment 155

Proposal for a regulation

Article 235 – paragraph 1

Text proposed by the Commission

Amendment

Not later than [OP please insert the date = 5 years after the date of entry into force of this Regulation], and every 5 years thereafter, the Commission shall ensure that an evaluation in accordance with Commission guidelines of the EU Customs Authority’s performance in relation to its objectives, mandate, tasks and governance and location(s) is carried out.

1. Not later than [OP please insert the date = 4 years after the date of entry into force of this Regulation], and every 5 years thereafter, the Commission shall ensure that an evaluation in accordance with Commission guidelines of the EU Customs Authority’s performance in relation to its objectives, mandate, tasks and governance and location(s) is carried out.

Amendment 156

Proposal for a regulation

Article 240 – paragraph 1

Text proposed by the Commission

Amendment

Customs authorities shall cooperate with other authorities at national level, including, but not limited to, market surveillance authorities, sanitary and phytosanitary authorities, law enforcement authorities and tax authorities, in the field other legislation applied by the customs authorities, collection of duties and taxes and other relevant fields of cooperation. Where appropriate, customs authorities shall also cooperate with relevant bodies, expert groups, agencies, offices or networks coordinating the activities of other authorities at Union level. Where appropriate, customs authorities shall also cooperate with other relevant parties at EU level, as referred to in paragraph 9, and the involved customs authorities shall notify the EU Customs Authority.

1. Customs authorities shall cooperate with other authorities at national level, including, but not limited to, market surveillance authorities, sanitary and phytosanitary authorities, law enforcement authorities and tax authorities, and any other authorities responsible for the implementation of other legislation applied by the customs authorities, collection of duties and taxes and other relevant fields of cooperation. Customs authorities shall immediately alert relevant authorities of suspected infringement to other EU legislations and send a notification in the EU Customs Data Hub. Where appropriate, customs authorities shall also cooperate with relevant bodies, expert groups, agencies, offices or networks coordinating the activities of other authorities at Union level. Where appropriate, customs authorities shall also cooperate with other relevant parties at EU level, as referred to in paragraph 9, and the involved customs authorities shall notify the EU Customs Authority.

Amendment 157

Proposal for a regulation

Article 240 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

(d a) the exchange of skills and best practices through joint trainings on how to detect non-compliant products, including keeping up to date on any other Union legislation that sets compliance requirements such as those related to product safety and sustainability.

Amendment 158

Proposal for a regulation

Article 242 – paragraph 1 – point -a (new)

Text proposed by the Commission

Amendment

-a determining a list of services defining clearly the possible role of customs in the application of other relevant policies at the borders of the Union;

Amendment 159

Proposal for a regulation

Article 243 – paragraph 1

Text proposed by the Commission

Amendment

The EU Customs Authority may, without prejudice to the powers of the Commission and subject to its prior approval, conclude working arrangements with the authorities of third countries and international organisations. National customs authorities and other relevant national competent authorities shall be informed of these arrangements. These arrangements shall not create legal obligations incumbent on the Union. They may empower the EU Customs Authority to exchange information with third countries authorities, as well as best practices and conduct joint activities such as joint controls aiming at avoiding circumventions of Union customs legislation and other relevant legislation by fraudulent economic operators and at ensuring compliance of imports with EU law.

Amendment 160

Proposal for a regulation

Article 247 – paragraph 1

Text proposed by the Commission

Amendment

1. When the person responsible for an act or an omission resulting in a customs infringement referred to in Article 252 provides the evidence that that person acted in good faith, it is taken into account in determining the sanction referred to in Article 254.

1. Where the person responsible for an act or omission which has resulted in a customs infringement within the meaning of Article 252 proves that he acted in good faith, this shall be taken into account when determining the penalty referred to in Article 254. Priority shall be given to improving the company's processes in partnership in order to prevent errors before any sanction is imposed. When reducing the sanction to be imposed for the customs offence, the following circumstances shall be taken into account:

(a) the goods in question are not subject to the other legislation applied by the customs authorities;

(b) the customs offence does not have a significant impact on the determination of the amount of customs duties and other charges to be paid;

(d) the previous experience with the economic operator;

(e) the complexity of the underlying transaction, the number of similar transactions;

(f) the clarity of the provisions to be complied with;

(g) the rectification of incomplete or erroneous information by subsequent data transmission.

Justification

Following the logics of recital 62, more criteria is needed for the establishment of mitigating circumstances.

Amendment 161

Proposal for a regulation

Article 252 – paragraph 1 – point g a (new)

Text proposed by the Commission

Amendment

(g a) infringement to importer and deemed importer obligations in accordance to Articles 20 and 21.

Amendment 162

Proposal for a regulation

Article 253 – paragraph 1 – subparagraph 1 (new)

Text proposed by the Commission

Amendment

The Commission, Member States and the EU Customs Authority shall exchange best practices and methodologies to improve the effectiveness of the sanctions. The Commission shall assess whether the sanctions as applied by Member States are sufficient to achieve its objectives.

Amendment 163

Proposal for a regulation

Article 255 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. For the purpose of paragraph 1, the evaluation will take into account inter alia:

- the quality of the cooperation among customs authorities and between customs authorities and other relevant authorities;

- the effectiveness of customs controls, the relevance of existing technologies;

- the overall compliance of goods entering the customs territory of the EU with customs legislation and other legislation;

- the nature of the infringements broken down by category;

- the number of Authorized Economic Operators and Trust and Check traders, the percentage of withdrawals of the status and the reasons thereof;

- the nature of the working arrangements and the joint activities referred in Article 243;

- the compliance of imported goods with Union legislation on consumer protection, origin marking and labelling;

- an estimation of the customs revenue gap.

Amendment 164

Proposal for a regulation

Article 256 – paragraph 4

Text proposed by the Commission

Amendment

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 the European Parliament for information. The Commission shall report the main findings in its report on the implementation of the common commercial policy.

Amendment 165

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

By ... [OP please insert the date = 5 years after the entry into force] and every 5 years thereafter, the Commission shall carry out an evaluation of this Regulation in light of the objectives that it pursues and shall present a report thereon to the European Parliament, to the Council and to the European Economic and Social Committee.

By ... [OP please insert the date = 4 years after the entry into force] and every 5 years thereafter, the Commission shall carry out an evaluation of this Regulation in light of the objectives that it pursues and shall present a report thereon to the European Parliament, to the Council and to the European Economic and Social Committee.

Amendment 166

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 2 – point b a (new)

Text proposed by the Commission

Amendment

(b a) an assessment of the feasibility of Trust and Check status for small and medium-sized enterprises (SMEs), including, where appropriate, an analysis of the implications for appropriate certification criteria;

Amendment 167

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 2 – point b b (new)

Text proposed by the Commission

Amendment

(b b) an assessment of the deadlines set out in subparagraph 1 of Article 6(2) and subparagraph 1 of Article 6(3) in view of shortening them where appropriate;

Amendment 168

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 2 – point b c (new)

Text proposed by the Commission

Amendment

(b c) an assessment of the accuracy and reliability of the information provided into the EU Customs Data Hub;

Amendment 169

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 2 – point b d (new)

Text proposed by the Commission

Amendment

(b d) an assessment of the balance between accessibility and confidentiality of sensitive data provided and processed in the EU Customs Data Hub;

Amendment 170

Proposal for a regulation

Article 258 – paragraph 1 – subparagraph 2 – point b e (new)

Text proposed by the Commission

Amendment

(b e) an evaluation of the support services and of the resources available for user assistance, notably for the SMEs, and navigation of the EU Customs Data Hub.

Amendment 171

Proposal for a regulation

Article 261 – paragraph 2

Text proposed by the Commission

Amendment

The power to adopt delegated acts referred to in Articles 4, 6, 7, 10, 14, 19, 23, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 shall be conferred on the Commission.

2. The power to adopt delegated acts referred to in Articles 4, 6, 7, 10, 14, 19, 23, 24, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 shall be conferred on the Commission.

Amendment 172

Proposal for a regulation

Article 261 – paragraph 3

Text proposed by the Commission

Amendment

The delegation of power referred to in Articles 4, 6, 7, 10, 14, 19, 23, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3. The delegation of power referred to in Articles 4, 6, 7, 10, 14, 19, 23, 24, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Amendment 173

Proposal for a regulation

Article 261 – paragraph 6

Text proposed by the Commission

Amendment

A delegated act adopted pursuant to Articles 4, 6, 7, 10, 14, 19, 23, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

6. A delegated act adopted pursuant to Articles 4, 6, 7, 10, 14, 19, 23, 24, 25, 27, 28, 29, 31, 32, 56, 58, 59, 60, 63, 65, 66, 71, 72, 73, 77, 80, 81, 83, 85, 86, 88, 90, 91, 95, 97, 99, 101, 102, 105, 107, 108, 109, 111, 115, 116, 119, 123, 132, 148, 150, 156, 167, 168, 169, 170, 173, 175, 176, 179, 181, 186, 193, 199, 242, 244, 265 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Amendment 174

Proposal for a regulation

Article 265 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

The following provisions shall apply from 1 March 2028:

2. The following provisions shall apply from 12 months after the entry into force of the Regulation and not later than 1 March 2028:

Amendment 175

Proposal for a regulation

Article 265 – paragraph 3

Text proposed by the Commission

Amendment

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 by 31 December 2035.

Amendment 176

Proposal for a regulation

Article 265 – paragraph 4

Text proposed by the Commission

Amendment

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 from 1 March 2031.

ANNEX: List of entities or persons

from whom the rapporteur for the OPINION has received input

The following list is drawn up under the exclusive responsibility of the rapporteur for the opinion. The rapporteur has received input from the following entities or persons in the preparation of the draft opinion, until the adoption thereof in committee:

Entity and/or person

European Commission DG TAXUD

BEUC

FEB/VBO

Institute of Export and International Trade

Permanent Representation of Belgium to the EU

IEEP

Green Customs Initiative / UNEP

World Customs Organisation

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013

References

COM(2023)0258 – C9-0175/2023 – 2023/0156(COD)

Committee responsible

Date announced in plenary

IMCO

19.10.2023

Opinion by

Date announced in plenary

INTA

19.10.2023

Associated committees - date announced in plenary

19.10.2023

Rapporteur for the opinion

Date appointed

Saskia Bricmont

27.6.2023

Discussed in committee

28.11.2023

Date adopted

24.1.2024

Result of final vote

–:

Members present for the final vote

Anna-Michelle Asimakopoulou, Tiziana Beghin, Saskia Bricmont, Jordi Cañas, Daniel Caspary, Markéta Gregorová, Roman Haider, Heidi Hautala, Karin Karlsbro, Miapetra Kumpula-Natri, Danilo Oscar Lancini, Bernd Lange, Margarida Marques, Gabriel Mato, Sara Matthieu, Emmanuel Maurel, Carles Puigdemont i Casamajó, Samira Rafaela, Inma Rodríguez-Piñero, Ernő Schaller-Baross, Helmut Scholz, Joachim Schuster, Sven Simon, Dominik Tarczyński, Kathleen Van Brempt, Marie-Pierre Vedrenne, Jörgen Warborn, Jan Zahradil, Juan Ignacio Zoido Álvarez

Substitutes present for the final vote

Marek Belka, Michiel Hoogeveen, Włodzimierz Karpiński, Liudas Mažylis

Substitutes under Rule 209(7) present for the final vote

Hildegard Bentele, Izaskun Bilbao Barandica, Paolo Borchia, Antonio Maria Rinaldi, Domènec Ruiz Devesa, Lucia Vuolo

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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