Customs risk management in details

Why it's crucial?

Protecting the security and safety of the EU and its citizens 

Security is a top priority for EU customs. Customs officers control goods and people carrying goods that arrive at the EU’s external border by all means of transport to ensure the security and safety of EU residents and businesses, protecting health, the environment, EU financial interests and its economic security. 

In recent years, the EU Commission together with EU countries have put significant measures in place under the Customs Risk Management Framework (CRMF). 

The European Commission developed and deployed the new Import Control System 2 (ICS2) in collaboration with EU countries to improve and enhance risk assessment. For more information, consult the dedicated page: Import Control System 2. 

Customs likewise screen all exports from the EU to ensure that goods subject to dual-use technology regimes or restrictive measures do not end up in the hands of bad actors or sanctioned states.

Protecting and facilitating legitimate trade 

• Customs clearance: authorities deal with more than 100 imported items per second, of which a large part is ‘e-commerce’ (distance sales of mainly very low value).
• From 2022 to 2024, the estimated number of ‘e-commerce’ items doubled each year to reach 4.6 billion items in 2024. For more information, consult the dedicated page: Customs and e-commerce.
• Import value has roughly tripled in the last ten years (from around EUR 1.1 trillion in 2014-15 to around EUR 3 trillion in 2023-2024). Visit the dedicated page to learn more about EU customs union facts and figures. 

The above facts make it unrealistic to control 100% of the traffic that comes in or out of the EU. Therefore, risk management is essential. EU customs administrations must target risky shipments while ensuring a smooth flow of legitimate trade. 

Although the bulk of trade is lawful, a UNCTAD study estimates illicit trade to be between 8% and 15% of the global GDP. However, the scale of illicit trade is, by nature, difficult to quantify. Its cost to the global economy is considerable, estimated to be between USD 1.250 and 3.574 trillion. 

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Protect the financial interests of the EU 

Customs duties are a source of income for the EU and EU countries. Therefore, customs authorities are responsible for ensuring that customs duties are properly applied. 

EU countries implement harmonised risk analyses based on common risk criteria and standards for financial risks established by European Commission. These criteria help customs in all EU countries target suspicious declarations and apply the correct amount of duty when needed. 

How it works

The Customs Risk Management Framework (CRMF) 

The CRMF aims to provide: 

• an equivalent level of protection in customs controls for the whole EU
• harmonised application of customs controls by EU countries
• a common approach to setting priorities and allocating resources
• proper balance between customs controls and facilitation of legitimate trade 

It is based on five pillars: 

• identification and control of movements of high-risk goods using common risk criteria (CRC)
• identification of priority control areas (PCAs) subject to more intense controls for a specific period of time
• systematic and intensive exchange of risk information between customs through the customs risk management system
• contribution of authorised economic operators (AEOs) in a customs-trade partnership to secure and facilitate legitimate trade
• Pre-arrival/pre-departure security risk analysis based on cargo information that traders submit electronically prior to goods arriving in or departing from the EU specifically to cater primarily for security and safety risks. 

See the chronology of the CRMF’s development.

The future of the EU customs risk management 

The reform of the Union Customs Code (UCC) will significantly enhance risk management through establishment of the EU Customs Authority and development of the EU Customs Data Hub. Read more about the EU customs reform.