EUROPEAN COMMISSION

Brussels, 17.5.2023

COM(2023) 258 final

2023/0156(COD)

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

(Text with EEA relevance)

{SEC(2023) 198}
{SWD(2023) 140}
{SWD(2023) 141}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The EU customs union is a true success story of European integration and prosperity. It is the basis and the guardian of the EU single market 1 , allowing goods to move freely within the Union. The Union speaks with one voice in international trade relations as one of the largest trading blocs in the world. The smooth functioning of the customs union is fundamental for the EU’s economy and prosperity, and its international competitiveness. Citizens and companies benefit from international trade, while at the same time, customs tariffs, quotas, and other trade measures contribute to protect industrial production and jobs in the union and to provide revenue to public finances.

The EU economy is in the twin green and digital transition and has therefore adopted ambitious legislation, setting environmental, security, social and digital standards that shape the way businesses operate within and beyond the single market. This ambitious agenda risks being undermined if Union productions are replaced by imports from third countries that do not respect these standards. Without central supply chain monitoring and control by customs, the Union does not have full visibility on which goods enter and leave its territory. This weakens not only the credibility of the EU’s sectoral policies, but also limits the EU’s might as geopolitical actor.

Customs authorities are increasingly burdened with an ever-growing range of tasks stemming from the above mentioned very ambitious legislation that has been adopted in the last years. As a result, customs authorities are today squeezed between increasing tasks and complexity on the one hand, and a sharp increase of low value shipments in e-commerce on the other. Moreover, without a central supply chain supervision, the Union does not have full visibility and control over which goods enter and leave single market. This amplifies the inherent challenges to customs processes, data and IT, and the governance of the customs union. As the impact assessment demonstrates, customs authorities struggle in their mission to protect, with issues on the risk management and cooperation with market surveillance authorities, law-enforcement authorities and bodies, tax authorities and other partners. Also, problematic are the administrative burden for trade, the difficulties in performing controls on e-commerce goods, the limited data quality and access, as well as the divergences of implementation between Member States.

This reform strengthens the capacity of customs to supervise and control which goods enter and leave the customs union. The customs reform is a long-term strategic decision, aiming at adapting flexibly to changes in supply chains and better defending the financial interest of the EU and its Member States as well as EU’s security, safety and public interests.

Against this background, in her political guidelines European Commission President Von der Leyen announced: ‘It is time to take the customs union to the next level, equipping it with a stronger framework that will allow us to better protect our citizens and our Single Market. I will propose a bold package for an integrated European approach to reinforce customs risk management and support effective controls by the Member States’ 2 .

As a first follow up, the Commission presented a Customs Action Plan 3 , outlining concrete actions to prepare the reform. As announced in the plan, and following the request of the European Parliament, the Commission conducted an interim evaluation of the implementation of the Union Customs Code (UCC) 4 , which recognised progress, but also identified the need to strengthen the framework on e-commerce and prohibitions and restrictions. In addition, the interim evaluation outlined the challenges in developing 27 national customs IT systems. The Customs Action Plan also announced an impact assessment of the pros and the cons of the reform, and the strategic discussion with national customs administrations in a reflection group on how to make the customs union more agile, technologically advanced and crisis-proof, which took place in 2022.

Recognising the need for structural change, the Commission engaged with stakeholders, academia and international partners in a foresight exercise on the future of customs in the EU 2040. The foresight report recommended ‘to address the governance challenge of the customs union by giving preference to a joint, central structure in order to speak with one voice, to leverage technological advancements and to make the most effective use of customs’ data’. 5 Moreover, the independent report of the Wise Persons Group on challenges facing the EU Custom Union concluded that ‘serious divergences remain between national customs authorities in the application of rules and procedures’ and ‘today the level of protection of citizens and Member States depend on the place where goods are controlled, and fraudulent and negligent businesses enjoy a significant low-risk advantage over honest and compliant firms and individuals’ 6 .

The European Court of Auditors identified challenges for customs in special reports. One report found that insufficient harmonisation in customs controls hampers EU financial interests, and recommended: ‘to the Commission to enhance the uniform application of customs controls, and develop and implement a fully-fledged analysis and coordination capacity at EU level. 7 The Court further concluded that delays in customs IT development were ‘in particular due to changing project scope, insufficient resources allocated by the EU and Member States, and a lengthy decision-making process due to the multi-layered governance structure.’ 8  For e-commerce, the auditors highlighted challenges in collecting correct amounts of VAT and customs duties. 9 Another report highlighted shortcomings in the legal framework and an ineffective implementation in import procedures, including ‘differing approaches in terms of customs controls to tackle undervaluation, misdescription of origin and misclassification and to impose customs penalties’, impacting the trader’s choice of customs office. 10  

This reform simplifies the UCC and cuts red tape, in line with the Commission's regulatory fitness and performance programme (REFIT). It is part of the Commission Work Programme 2022 under the priority ‘An economy that works for the people’. 11

This reform includes two additional legislative proposals which were adopted by the Commission today as part of a broad package, notably for amending the VAT directive, 12 on one side, and the Duty Relief Regulation and the Combined Nomenclature, 13 on the other side. Both amendments complement the customs reform in relation to the necessary measures needed to address the challenges of distance sales of goods (e-commerce transactions), namely by way of removing the threshold of EUR 150, above which customs duties are due under current rules.

•Consistency with existing policy provisions in the policy area

The UCC is the main legal and IT framework for customs processes in the customs territory of the Union. This reform revises and repeals the basic act. A revision of the detailed implementing acts and delegated acts will follow.

The reform is consistent with the legislation on own resources for the Union budget that establishes customs duties as a direct source of its revenue 14 , and with the rules on how they are made available to the Union. 15

The proposal ensures full alignment between the VAT and customs treatment of B2C e-commerce sales related to goods dispatched from third countries or territories. This alignment entails the scope, the deadlines applicable for the determination, collection and payment of duties and taxes, the related reporting obligations as well as the harmonisation of the liabilities of the online sellers, in particular the marketplaces. The synchronised rules will allow online sellers to offer a true all-inclusive price when selling goods online to consumers in the EU for all goods imported from third countries, except when the goods are subject to EU harmonised excise duties 16 and commercial policy measures.

On 27 February 2023, the European Commission and the Government of the United Kingdom reached a political agreement in principle on the Windsor Framework, a comprehensive set of joint solutions aimed at addressing, in a definitive way, the practical challenges faced by citizens and businesses in Northern Ireland. The joint solutions cover, amongst other things, new arrangements on customs. On 24 March 2023, the EU-UK Joint Committee adopted Decision No 1/2023 laying down the arrangements relating to the Windsor Framework, notably in the field of customs. Decision No 1/2023 stipulates that the United Kingdom may notify the Union and, in case no solution is found, suspend certain provisions of the Decision setting out arrangements for moving goods not at risk of entering the Union from another part of the United Kingdom to Northern Ireland, if the Union acts providing for facilitations relating to these movements of goods cease to be in force, in whole or in part, in such a way that they no longer provide for the same level of facilitations. The revision of customs legislation set out in this Regulation will not affect the level of the facilitations referred to in Joint Committee Decision No 1/2023.

•Consistency with other Union policies

Customs action supports the enforcement of a wide and growing number of over 350 different Union legislation, in policy fields such as trade, industry, security, health, environment and climate. 17  The reform strengthens the capacity of customs to provide this service, and introduces a cooperation framework with market surveillance, law enforcement and other authorities, and Union agencies and bodies, including the European Union Agency for Law Enforcement Cooperation (Europol) and the European Border and Coast Guard Agency (Frontex). The reform is consistent with other Union policies, notably:

·The Market Surveillance Regulation, 18  which provides the legal framework for risk-based controls of certain non-food products sold on the Union market, in particular through a systematic cooperation and exchange of information between Market Surveillance Authorities and customs authorities for detecting unsafe or non-compliant products entering the single market. Customs will also be called to implement the revised General Product Safety Regulation 19 and the new rules aimed to effectively ban the placing on the single market of products made wholly or in part by forced labour, 20  once the respective proposals are adopted.

·In the field of environmental legislation, customs authorities are involved in the enforcement of numerous rules inter alia on chemicals, 21  the protection of species of wild fauna and flora, 22  and the fight against climate change by minimising the use and emissions of dangerous substances. 23   24 Customs authorities will also be called on to apply new Union rules to curb deforestation 25 and treat waste shipments. 26 Moreover, the Sustainable Products Initiative proposal calls on customs authorities to cross-check the customs declaration with the information on the imported goods contained in the newly created digital passport for products, to reduce the negative life cycle environmental impacts of products placed on the single market. 27 The proposal to establish a Carbon Border Adjustment Mechanism 28  will help ensure that the EU's climate objectives are not undermined by the risk of carbon leakage and encourage producers in non-EU countries to green their production processes. The mechanism applies to imported goods, and customs supports the enforcement.

·On the enforcement side, the legal basis for mutual assistance among national authorities and with the Commission regarding the application of customs and agricultural legislation provides for relevant measures. They include the rules for preventing, investigating, and prosecuting customs fraud 29 and the operational cooperation framework between Member States’ and Union’s law enforcement authorities and bodies aimed to ensure security inside the Union against e.g., drug and illicit firearms trafficking. 30

·The new Digital Services Act sets clear obligations for digital service providers to tackle illegal content, which results in strengthened traceability and checks on traders in online marketplaces to ensure products placed on the Single Market are safe. 31

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 3(1)(a) of the Treaty on the Functioning of the European Union (TFEU) establishes that the Customs Union is an exclusive competence of the Union. As a consequence, only the Union can adopt customs legislation, while Member States are responsible for its implementation.

The legal basis for this initiative is Articles 33, 114 and 207 TFEU.

Articles 33 and 114 TFEU give the European Parliament and the Council the right to take measures to strengthen customs cooperation between Member States and between the latter and the Commission to ensure the proper functioning of the internal market through the abolition of internal borders and the achievement of free movement of goods. 

Article 207 TFEU builds on the premise that the scope of the initiative extends beyond cooperation between customs authorities to include trade facilitation and protection against illicit trade as an important aspect of trade policy, in accordance with the applicable international framework for trade policy with third countries.

•Subsidiarity (for non-exclusive competence)

As this proposal follows within the exclusive competence of the Union, the subsidiarity principle does not apply.

•Proportionality

The common customs rules and processes established in the UCC are implemented by Member States. The existing framework has encountered problems in terms of uniform implementation and harmonisation, generating a fragmentation of processes, practices and approaches that puts the customs union at risk. Such fragmentation and related consequences cannot be solved at national level. A revised and comprehensive, set of rules on customs processes, common data management and Union-level governance to address the problems identified and to be implemented in the same way is thus necessary.

This initiative does not go further than is necessary to achieve these objectives. The above-mentioned elements are mutually reinforcing and will enable a significant reduction of burden on both public authorities and private sector operators, effective harmonisation of rules and practices, and a level playing field for economic operators in the fulfilment of customs-related obligations.

•Choice of the instrument

The choice of instrument (regulation) is essential because the customs union must provide legal certainty for trade and public authorities. The customs union needs to ensure the smooth flow of legitimate trade and at the same time provide for effective, risk-based intervention by public authorities to contribute to the implementation of major elements of the Union acquis, notably the single market, the single market, security of the Union and the Union budget, through traditional own resources. The legal instrument of the UCC, which will be repealed by the reform is also a Regulation.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

In 2022, the Commission presented an interim evaluation of the implementation of the legal provisions and the delivery of the IT systems of the UCC in terms of effectiveness, efficiency, relevance, coherence with related policies and EU added value. 32  The evaluation report indicated that the success of the UCC’s implementation in the period 2016-2020 is partial.

First, while the state of implementation of the legal provisions was considered to be on track, some difficulties still remain with the implementation of the 17 IT systems established by the Code. Eight systems were successfully deployed by 2020 and are working satisfactorily according to stakeholders, four more were deployed in 2021 while five systems are to be deployed gradually by end 2025.

Second, some tangible progress in improving the customs environment has been realised but does not evenly concern all the areas analysed in the evaluation. The UCC contributed to clarifying and harmonising customs rules, in order to reduce divergent approaches across Member States, such as in the areas of customs decisions, conditions for granting the status of Authorised Economic Operator (AEO) and in some special procedures. However, harmonisation is insufficient in certain other areas, in particular risk management and monitoring of the AEO status, and varied interpretations of rules continue to be a problem. Moreover, as many of the most significant changes introduced by the UCC, such as some simplifications to the customs clearance process (e.g. EU-level centralised clearance at import and related trade facilitations), are dependent on ongoing IT projects, many of the anticipated benefits of the UCC are yet to be realised.

Third, the evaluation revealed that the implementation of the UCC did not fully tap into the potential synergies with related policies and that proper coordination and information exchange between customs authorities and other relevant national administrations in charge of applying other Union policies at the border is lacking, particularly with regard to goods subject to prohibitions and restrictions. Insufficient coordination for the purpose of aligning requirements, standards (particularly regarding data collection and sharing) and procedures has reportedly been an obstacle for digitalisation and held up progress on implementing crucial simplifications.

The evaluation also considered the relevance of the UCC as regards the most pressing challenges that customs are faced with today, such as the capacity to handle the huge volume of customs declarations and procedures from e-commerce operations. In this respect, the evaluation acknowledged that the UCC was conceived for a business model mainly based on traditional trade, where cargo vessels move large quantities of similar goods by sea. While this model still largely exists today, the dramatic increase in e-commerce transactions, in which low value consignments are individually shipped from third countries to the final consumers in the Union, puts customs authorities and customs legislation under pressure. In 2022, 890 million e-commerce transactions were declared with the H7 declaration, representing 73% of all import customs declarations, but only 0,5% of all import value. E-commerce transactions are also problematic as regards compliance with prohibitions and restrictions applied in the EU linked to non-financial risks. For these, reasons, the evaluations suggested that further action is needed in order to address these challenges in legislation.

•Stakeholder consultations and collection of expertise

A public consultation on the revision of customs legislation was launched on 20 July until 19 September 2022. 33 The questionnaire was available on the EU ‘Have Your Say’ platform in all official EU languages and received 192 responses. Among the policy changes and mechanisms that could be included in a reform of the customs union, respondents strongly agree to include the following, in order of preference:

1.Simplifying customs formalities for reliable and trusted traders established in the Union (69.47%);

2.Enhancing cooperation between customs and non-customs authorities (55.79%), in particular regarding information exchange (65.97%), operational coordination (59.47%) and improved enforcement of prohibitions and restrictions (47.37%);

3.A new partnership with trusted traders and other competent authorities for better risk management, including reinforced advance cargo information (53.16%);

4.Providing for an Union-level customs information environment (54.21%), in which the most favoured features would be a simplified provision of data (enabling re-use of data, avoiding duplications, etc.) for 73.16% of replies, data management capabilities (64.21%) and the concept of ‘single window’ for the handling of non-customs formalities (63.16%);

5.Adapting customs legislation to e-commerce transactions, for example by strengthening supervision of business-to-consumer flows and liability of involved actors for all fiscal and non-fiscal rules (52.11%);

6.35.79% strongly agree about reforming the governance of the customs union to provide for an EU layer (with another 23% that tend to agree, about 4.5% disagree, the rest did not provide an opinion); but if such an EU layer would exist, it should be tasked in particular with the training of customs officers (59.47%), IT management (51%), the financing of customs equipment (44.74%) and EU crisis response (41.5%);

7.Integrating the green agenda in the customs agenda should absolutely be part of a reform only for 31%, while 27.8% tend to agree to this and 6.31% disagree.

In addition to the public consultation, a range of targeted consultation activities were organised to gather views of expert stakeholders, as follows (see Annex II to the Impact Assessment for details):

·Discussions with national customs administrations in the context of the Reflection Group 34  on (i) the recommendations included in the Wise Persons Group report, the need and features of a new partnership with traders and strengthened customs supervision and risk management; (ii) an enhanced cooperation framework with other authorities and green customs agenda and (iii) a new data paradigm and governance.

·Discussion with trade representatives in the Trade Contact Group 35  in four dedicated meetings about (i) the business needs and suggestions for a revision of the UCC, (ii) the recommendations of the Wise Persons Group report, (iii) the results of the public stakeholder consultation and (iv) key elements of the reform.

·Consultation of Member States customs administrations in a Reflection Group composed of the Directors Generals of national customs authorities, specifically set-up to look at the various building blocks of the reform package;

·Consultation of Union-level trade associations, federations and individual companies represented in the Trade Contact Group;

·Consultation of Commission services working with various regulatory requirements on goods applicable at the borders;

In addition, evidence supporting this initiative was gathered from existing documentary sources including legislation and other policy documents, customs and trade statistics, evaluations and reports on relevant policies and information on related initiatives, as listed in Annex I to the Impact Assessment. External expertise used for the impact assessment included in three studies on the evaluation of the UCC implementation, on the AEO programme and on solutions to the challenges posed by e-commerce. 36

The consultation activities allowed for the collection of qualitative and quantitative information and data, which were processed and analysed systematically using appropriate techniques. Qualitative data (including from submissions and contributions sent to the Commission) was coded according to key themes, then reviewed and analysed from different angles and presented in narrative form. Quantitative data (survey responses) was processed using Excel and Commission’s public consultation dashboard tool and analysed using statistical methods such as frequency counts, cross-tabulations and simple trends.

•Impact assessment

The draft impact assessment report was submitted to the Commission’s Regulatory Scrutiny Board (RSB) on 30 September 2022. Following the meeting on 26 October 2022, the RSB issued a negative opinion on 28 October 2022, suggesting several areas for further improvement. The revised report was resubmitted on 21 December 2022. The Board issued a positive opinion with reservations on 27 January 2023. The revision addressed all matters identified for improvement by the Board, which included better justifying the urgency and rationale to act now, the links to evaluation and European Court of Auditors work, the coherence with other initiatives, the delineation of the dynamic baseline (including the Customs Action Plan), the intervention logic, the mapping of the objectives, the contribution to Green Deal objectives, the way each option would work in practice, the extent to which options and measures are cumulative and exhaustive, the identification of combinations of options, the feasibility and funding risks, the presentation of costs and benefits, the impact analysis including in relation to the proposed governance structures, consumers, and IT cost assumptions, the reflection of stakeholder views, the monitoring and evaluation arrangements, the identification of individual measures in the options in customs processes and trusted traders, the explanation of e-commerce options including the removal of the EUR 150 exemption threshold, the one-in, one out approach, the delineation between costs and benefits and of illustrative figures, the impact analysis of governance solutions, the consumer impacts in particular regarding the removal of the EUR 150 duty exemption, and ex-post evaluation.

The impact assessment, as improved following the opinion of the Regulatory Scrutiny Board, distilled and summarised the five main problem areas underlying the need for reform:

1.Customs struggle in their mission to protect the Union financial interests, and the ever-increasing non-financial requirements under sectoral policies (product safety, security, protection of human, animal, plant health, of the environment etc.). Since only a small share of imports and exports can be physically controlled, customs depend on risk management – however, risk management today is not sufficiently effective, uniform or comprehensive at EU level. In addition, customs must work with other authorities across a wide range of challenges, but the quality and effectiveness of this co-operation is often sub-optimal and varies across the EU.

2.Current customs processes require traders to provide similar information on goods several times in the supply chain to different authorities via multiple and not always interoperable IT systems. This creates administrative burden for legitimate operators.

3.The current customs model is not fit for e-commerce. The huge rise of e-commerce has changed the nature of trade, from goods traditionally brought into the Union in big quantities via cargo, to millions of small consignments shipped directly to individual consumers. Customs authorities are not prepared to cope with the increase of volumes of goods and declarations. In addition, there is evidence of the systematic abuse of the €150 threshold below which customs duties are not charged; moreover, this exemption favours third-country e-commerce operators over traditional trade and EU retailers, distorting competition.

4.Data quality, access and analysis is limited. Although customs processes are digitalised, and customs risk analysis and controls rely on data, the data needed for carrying out customs supervision, risk analysis and controls are fragmented and duplicated across multiple systems in a decentralised customs IT infrastructure. This is costly for customs authorities, not flexible and hampers an efficient use of data. The lack of a comprehensive legal framework in the UCC on exchange and use of data also hampers its sharing between customs, the Commission, other authorities or partner countries.

5.The operational implementation in Member States diverges significantly in control practices and methods, implementation of simplifications, and penalties for infringements of the customs legislation. There is no appropriate Union-level risk analysis to properly supervise trade flows and detect non-compliant trade, and non-compliant operators can target EU points of entry with lower levels of controls.

Because of these problems: (i) not all customs duties are collected – loss of revenues undermines the financial interests of the EU and the Member States; (ii) dangerous, non-compliant or counterfeit products still enter or exit the EU single market, and (iii) illegal goods are smuggled into the EU, adapting to increased control activities of customs in one country by finding other entry points. These consequences undermine the competitiveness of compliant industry, translate to a loss of profit, jobs and revenues of legitimate businesses including in particular small and medium sized enterprises (SME) and put at risk EU citizens’ safety and security.

The impact assessment identified the key drivers behind the problems as (i) the inadequacy and excessive complexity of the customs processes; (ii) the fragmented and complex customs digitalisation, and (iii) the fragmented customs union governance structure.

To address these problems and the underlying drivers, the impact assessment identified three major policy choices, which will largely determine the extent to which the customs union gets the desired capacity to collect, protect and simplify as one. These are:

·to what extent should customs processes be reformed?

·to what extent should the customs data management approach be reformed?

·to what extent should the governance of the Customs Union be reformed?

The impact assessment considered four options, each providing a coherent package of measures addressing these three policy choices:

1. Option 1 – a package of simpler processes. This examined the key, interdependent, process components, notably the process steps themselves, the roles of the different actors and their compliance responsibilities, the use of data, the treatment of more reliable operators, the treatment of e-commerce flows, and the way in which penalties are applied across the EU to deter non-compliance. This package would reduce and simplify import process steps, clarify the responsibilities of the actors (notably importers and exporters), remove the customs duty exemption for goods valued at up to EUR 150, and provide for electronic platforms to be deemed importers and account for customs duties for business-to-consumer e-commerce traffic, with a simpler duty calculation approach. It would introduce a new Trust and Check approach to partnership with trade, where additional privileges (such as fewer and more targeted customs controls, and the possibility to “self-release” goods) would be available for transparent, reliable traders. It would introduce a common approach to administrative penalties. It would improve the Commission’s access to data to support risk management. These changes would be carried out under the current digitalisation model and the existing customs governance structure, which, it was assessed, would limit their impact.

2.Option 2 would complement Option 1 with an EU Customs Authority to coordinate cooperation between the Member States in risk management, support uniform implementation of rules, and manage customs programmes. This package would rely on the current digitalisation model.

3.Option 3 would create an EU Customs Data Hub, managed by the Commission, to implement the simpler customs processes identified in Option 1, in a centralised IT model. The data hub would facilitate collecting information from different actors, processing it for EU customs risk management and exchanging it with other competent authorities. As regards governance, the role of the Commission would be reinforced, in particular in the organisation of risk management, subject however to the limitations of the Commission’s capacities and its lack of an organisational mandate to deliver the full potential of the new data environment.

4.Option 4 includes simpler customs processes implemented via the EU Customs Data Hub managed by an EU Customs Authority in charge of (in addition to Option 2) operational risk management and data management and supporting the delivery of simplified processes.

Option 4 is the preferred option. Its three elements (reformed customs processes, implemented in a central EU Customs Data Hub, managed by an EU Customs Authority) reinforce each other to deliver better results and create synergies across the EU. This is the most efficient option, as the investment in central structures significantly reduces the cost for Member States and businesses. In particular, it has the following benefits 37 :

·Customs supervision is strengthened. Improved access to and processing of data via the EU Customs Data Hub will make EU risk management more efficient and increase customs’ capacity to detect fraud by identifying profiles of risky operators acting at Union level. It will generate additional revenues for the Union and its Member States. Improved access to data and better coordination among authorities will increase customs capacity to detect and stop goods not complying with Union requirements to the benefit of citizens and consumers.

·Administrative burden for legitimate trade is reduced. The revised processes are simpler, and data is collected once from the right source via a single interface in the EU Customs Data Hub. The assessment estimated savings could be in the region of EUR 1.2 billion to EUR 2.6 billion annually (taking account of the increased customs duty charge to businesses arising from the removal of the EUR 150 threshold on business-to-consumer e-commerce traffic, estimated in the region of EUR 1 billion annually).

·Centralisation of functions (IT, data and risk management) in the EU Customs Authority results in significant savings for Member States’ customs IT expenditure. The assessment estimated these could start in the region of EUR 194 million and rise over a 15 year window to around EUR 2.3 billion annually. The EU Customs Authority ensures coordination between national customs administrations and other authorities.

·E-commerce playing field is levelled with traditional trade. The revised processes allow e-commerce actors to provide financial and non-financial information in a simpler manner and make them liable for it; consumers benefit from more transparency of prices and fees.

·The customs union acts as one. The revised processes are delivered in a central EU Customs Data Hub by a central EU Customs Authority to facilitate uniform implementation in all Member States and avoid divergences.

As regards social and environmental impact, this option is expected to bring significant benefits through better enabling customs to enforce legislation that pursues social and environmental goals, in co-operation with the relevant other authorities. In particular:

·The preferred option, by combining the operational co-ordination mandate of the EU Customs Authority with the data tools and processes provided in the EU Customs Data Hub, will best enable structured, EU-wide co-operation between customs and relevant social and environmental policies in order to improve their outcomes from customs action at the border.

·The additional information that operators provide to customs should further improve the capacity of customs to help to enforce specific legislation pursuing social goals, such as the legislation banning forced labour, or environmental goals. 

·Removal of the EUR 150 duty exemption will put an end to the practice of splitting orders of a high value into several consignments lower than EUR 150 to profit from the duty exemption, with the consequent positive environmental effect on transport emissions. 

·Better enforcement of product requirements on imported goods might lead to a relocation of production into the Union

The use cases in the impact assessment further illustrate how the reform will support the implementation of relevant current policy objectives, including in the areas of ecodesign and sustainable products, consumer emissions, single-use plastics, persistent chemicals, and reduction of unfair competition from non-compliant imports affecting EU industry and jobs, and market surveillance activities in general.

As regards Sustainable Development Goals, the impact assessment identified how the reform would contribute to the implementation of these through measures taken in relation to international trade in goods and supply chains, which would, in particular:

·improve the facilitation of legitimate trade, connected with Goal 8;

·improve the detection and prevention of imports or exports which contravene relevant EU rules on, for example, waste, chemicals, or safe and sustainable product design, connected with Goal 12;

·strengthen the protection of territorial ecosystems (from e.g. imports which are products of deforestation) and protection of biodiversity (through helping detect traffic contravening CITES), connected with Goal 15.

The proposal is fully consistent with the do no significant harm principle. It will improve the enforcement of environmental policies and will streamline and make more efficient the conduct of international trade operations and their supervision by economic operators and public authorities respectively. The pooling of resources and tools in the central environment will in particular reduce duplication of systems development and administrative activities, reducing the overall time spent on customs processes and accordingly the consumption of resources.

The proposal is driven by the digital by default and privacy by default principles. It aligns with flagship Commission initiatives such as the AI act, Data Governance Act, GDPR and EUDPR. It provides for user-centric processes ready for automation, enabling all operational exchanges with customs to be carried out electronically through a single multipurpose EU interface. It supports the once-only principle, the reuse of data and the data minimization principles by providing for data, once submitted, to be integrated in other processes, and by embedding the EU Single Window Environment for Customs approach connecting customs and non-customs formalities (Regulation (EU) 2022/2399); also enabling a Data driven policy. It provides for a paradigm shift from multiple peer-process national systems towards a flexible central set of services and systems which will enable processes to be developed and changed in a cheaper, more consistent, agile and flexible manner. It will support innovation and digital technologies by enabling the use of advanced analytical techniques in customs operations, and EU-wide and pooling of resources and open-source development of components which can be used by all Member States in that context. Drafting is “digital-ready”, with provision for empowerments and delegations to address technical aspects such as data elements and rules.  

•Regulatory fitness and simplification

The reduction and simplification of customs processes, and the introduction of a single EU portal for interacting with customs (the EU Customs Data Hub), is expected to significantly reduce the administrative burden compared with the Union Customs Code currently in force.

In the impact assessment, it was estimated that total savings for economic operators, in the preferred option could amount to EUR 26 billion over 15 years (taking account of the increased customs duty charge to businesses arising from the removal of the EUR 150 threshold on business-to-consumer e-commerce traffic, estimated in the region of EUR 1 billion annually).

•    Fundamental rights

Customs has a long experience in collecting and processing data that contains business sensitive information, financial and personal data. The revision of the customs code fully respects the fundamental right of protection of personal data. The reform even improves the protection of this right, as demonstrated in the impact assessment for option 4. The Data Hub would integrate personal data protection tools and controls, enabling each data controller to ensure data protection rights. This will have a positive impact also for data subjects that would be able to exercise their rights in a very similar manner across all Member States.

4.BUDGETARY IMPLICATIONS

The reform strengthens customs in addressing the collection of unpaid duties, undervaluation and fraud. Furthermore, removing the duty exemption on goods below EUR 150 closes a loophole and brings additional revenue to the Union budget estimated at EUR 750 million per year at current prices.

Gradually, the collection of duties will shift from the place of declaring the goods, towards the place where the importer or exporter is established in the Union. This facilitates the audit and collection of duties and simplifies the interaction for the importer or exporter, in particular for SMEs. While this change has no direct impact on the overall EU budget or the national contributions to the EU budget, it can gradually change the distribution of the share of customs duties retained by Member States as a collection cost. 

The EU Customs Authority and the development of the EU Customs Data Hub will not require a budgetary increase within the 2021-2027 period, as the costs of approximately €60 million during the first 2 years will be financed under the Customs Programme 2021-2027. Post 2027 the total costs of the Reform for the EU budget are estimated in the region of EUR 1.855 billion. This covers the cost of the tasks entrusted upon the EU Customs Authority with this proposal as well as the EU Customs Data Hub, without pre-empting the agreement on the post 2027 MFF and programmes. 

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

The Customs Union Performance (CUP) project run by the Commission annually collects and analyses aggregated information provided by the Member States about customs activity, trends, and performance in the EU to support evidence-based policy. One main outcome of the analysis is the Customs Union Performance Annual Report addressed to the Member States only, provides conclusions and recommendations on the main developments in the Customs Union, based on the analysis of Key Performance Indicators linked to the EU strategic objectives: protection, competitiveness, facilitation, control, and cooperation. The CUP indicators address several types of activities, ranging from the amount of customs duties collected, the use of simplifications, the role of the AEOs in customs processes, to actions in the field of customs controls and detection of illicit trade.

The collection of CUP data is currently voluntary, which raises questions about data quality, completeness, and consistency, as well as issues regarding data ownership and confidentiality. This initiative aims at further developing the CUP measurement by introducing a legal basis for a structured framework for the provision and analysis of relevant information on customs performance to produce the annual report. In addition, the legal basis for CUP will finally offer a tool for the monitoring and evaluation of the present initiative, improving indicators in the area of risk analysis and control inputs and outputs, and protection, collection, and simplification outcomes. This will address the lack of effective tools for supervision at the Commission’s disposal, as indicated in the UCC evaluation.

•Detailed explanation of the specific provisions of the proposal

This reform strengthens the capacity of customs to supervise and control which goods enter and leave the Customs Union. Customs will take a new strategic approach, driven by data analysis of supply chain information, to have targeted and coordinated customs action. The cooperation framework of customs authorities, market surveillance authorities, law-enforcement authorities and bodies, tax authorities and other partners is strengthened. In a new partnership with trade operators, the administrative burden is reduced and customs processes are streamlined. A new EU Customs Data Hub facilitates the exchange and combination of information in a single central environment. A new EU Customs Authority runs a central risk analysis and supports national administrations, leading to coordinated customs action. These measures prepare the Customs Union for the future, with growing volumes of e-commerce and with increasing complexity of prohibitions and restrictions.

The new Union Customs Code has a simple and intuitive structure. The role and responsibility of customs authorities, importer, exporter and carrier are defined. Information is collected in the new EU Customs Data Hub and processed for risk analysis. This is followed by a single title for entry, and for exit respectively. New titles introduce a crisis mechanism, the EU Customs Authority and the common minimum harmonisation of customs infringements and non-criminal sanctions.

Title I introduces the new Union Customs Code, that builds on many elements of the previous Code. The mission of customs authorities is strengthened, to reflect the wide range of services customs, starting with the collection of duties, to the protection of citizens, the environment and other public interests, the fight against unfair, non-compliant and illegal trade, as well as the support of legitimate trade flows. The title contains relevant definitions for the revised customs processes, most importantly the importer and exporter, the deemed importer in case of distance sales and the prohibitions and restrictions. 

The reform strives for transparency and accountability of the responsible actors and offers simplifications of the customs processes in return. Title II establishes the responsibilities of the importer, deemed importer and exporter towards customs. As regards roles, a weakness in the current system is that the persons currently accountable to customs, such as the declarant and the carrier have greater difficulty in fulfilling their responsibility for financial and non-financial compliance. Against this background, the most appropriate change at the level of roles is to attribute compliance responsibility to importers and exporters. Customs requires them to be established in the territory of the Union (which was already the case for the declarant in Article 170 (2) of the previous Code) and to register with the Member State of establishment, with listed exceptions. Online sellers and e-commerce platforms were so far not involved in the customs formalities at import. Acting as deemed importers, they will be obliged to provide to the customs authorities not only the data necessary for the release for free circulation of the goods sold to consumers in the EU, but also the information that they must collect for VAT purposes. The role of the carrier bringing goods into the customs territory, and the information required to that end, is clarified. The authorised economic operator scheme continues the successful cooperation of business and customs. This partnership is taken to the next level, with the introduction of a new status of Trust and Check trader.   These trusted and transparent traders grant the customs authorities access to their electronic systems keeping record of their compliance and the movement of their goods. In return, they got certain benefits, notably the possibility to release the goods on behalf of customs and to defer the payment of the customs debt.

Title III presents a new data paradigm that gradually integrates and replaces the current customs IT systems: moving from 27 IT environments with many systems in each Member State, towards a centralised set of systems and services. The EU Customs Data Hub is a centrally developed environment set of systems and services whose use is mandatory. It redefines how customs and other data is collected, used for customs supervision, and shared with partner authorities. It is also the new ‘engine’ that processes, connects and stores the information and runs EU level risk analysis. Together, this gives customs a better supply chain vision for its risk assessment and enables Customs action to become more targeted and strategic. Moreover, it allows applying data protection rules, rules for accessing information, IT security and confidentiality in a horizontal, coordinated and consistent manner.

Title IV retains essential concepts regarding the scope of customs supervision for goods to be brought into or to be taken out of the customs territory of the Union, to be placed under the end-use procedure or to be placed in internal transit. It adjusts the identification of competent customs offices to provide for the role of the customs office responsible for the place of establishment of the importer or exporter. Customs supervision, controls and mitigation measures will be based on risk management of the whole supply chain in real time, with an EU perspective. The improved risk management on both financial and non-financial risks is at the core of the reform. Title IV provides a clear description of the risk management process, both for financial and non-financial risks and the roles and responsibilities of the Commission, the EU Customs Authority and the customs authorities in this area. It addresses the use of the EU Customs Data Hub in supporting customs risk management and provides for a comprehensive exchange and use of information relevant for risk management and controls. National customs authorities remain in the driving seat for national risk management and conducting the necessary customs controls. Based on a new EU-level risk analysis the EU Customs Authority will issue EU control recommendations to customs authorities. These recommendations for controls will have to be implemented, or reasons provided as to why the control recommendation was not applied. The Commission will establish common risk criteria and standards and common priority control areas by implementing acts and may identify specific areas in the domain of other legislation which warrant priority treatment for customs risk management and controls. Title IV also provides for systematic evaluation of the implementation of risk management to support continuous improvement.

Title V contains the different customs procedures that allow a trader to temporarily store the goods, or to release them for free circulation on the EU Single Market. In principle, the customs authorities continue to be responsible for releasing the goods and for placing the goods in a customs procedure. Authorised Trust and Check traders will be able to release their goods without active customs intervention, where the information is available in advance and where the goods have not been selected for controls. The title also includes clear rules on the process and legal consequences when customs authorities need to consult other competent authorities before releasing the goods, including the possibility to require importers to continue informing about the distribution of the goods after they are in free circulation. In every scenario, customs can stop the movement of goods, refuse the release of goods, and ultimately has the possibility to seize the goods. Title V equally contains transitional provisions, allowing the current customs processes to continue with legal certainty throughout the transition period and until the new data management systems are operational.

Title VI presents the new simplified process for bringing goods into the Customs Union, a significant reduction in complexity and administrative burden. Customs collects information for risk analysis, including advance cargo and pre-departure information and intervene where necessary. The focus of customs administrations shifts from the individual consignment towards the supply chain supervision to identify risks. Customs maintains the capacity to intervene on every individual consignment, based on the information in the EU Customs Data Hub. Depending on the type of the customs procedures there is a minimum set of information, which has to be provided or made available to customs. Where customs has the relevant information in advance and sees no risk or problem to address, the goods can move in line with the principle to assess in advance and intervene only when and where necessary. The multiple customs declarations are gradually replaced by using business data, following a transition period to develop the necessary systems. Information can be provided earlier to strengthen the supply chain supervisions of customs. Building on the positive experience with ‘multiple filing’ in the import control system 2 (ICS2), different actors in the supply chain can provide their part of the relevant information. For example, the importer can provide the relevant information about the product and the transaction, while the carrier can provide the information about the routing and arrival separately. 

Rules on export in title VII mirror the processes for entry. The exporter is established in the Union and registered. Customs collects the relevant information and conducts a risk analysis. Legitimate trade flows are facilitated and, at the same time, customs capacity to supervise and enforce the rules is strengthened.

Title VIII maintains the special procedures of the previous Code. Relevant information is collected on special procedures, such as transit, inward and outward processing, temporary admission, end use or customs free zones. In line with the general approach, the transparency and accountability of the responsible economic operator are improved.

Title IX lays down detailed rules in respect of the three elements, which need to be determined to apply import and export duties as well as other measures applicable to trade in goods, such as anti-dumping duties: classification, value and origin. The proposal does not modify these factors, which are largely determined by international rules in the World Trade Organisation and World Customs Organisation, as well as EU bilateral trade agreements. However, as these rules have been identified as being particularly complex for e-commerce, the title will provide two simplifications that the importer may choose to apply when determining the customs duty applicable to business-to-consumer transactions.

The first simplification concerns the proof of non-preferential origin that can be waived for e-commerce goods if the importer opted for the use of the simplified tariff treatment. This is necessary, since the administrative burden to obtain such proof is usually disproportionate compared to the value of the goods. Secondly, and also under the condition that the importer uses the simplified tariff treatment, the transport costs up to the final destination of the goods are to be included in the customs value. This approach ensures full alignment of the tax base for import duty and VAT as regards business-to-consumer e-commerce transactions where transport costs are typically determined up-to the final consumer’s address.

In accordance with Title X the customs debt incurs at the time of release for free circulation. Since the work of customs authorities is shifting from a focus on the consignment towards the supply chain, their work also focuses more on the established importer and exporter. After a transition, the customs debt arises at the place where the importer is registered, as opposed to arising where the customs declaration is lodged. This is an important simplification for economic operators and in particular SMEs, under the new partnership with trade. In turn, customs authorities are in a better position to control and audit established importers. Customs duties are a traditional own resource of the EU budget. Member States retain a share of the duties as collection cost, the distribution of which might gradually change with the new provisions. Furthermore, the amount of duties is determined by the importer or the exporter, and by the responsible customs authority only where the importer has not done so. In e-commerce, the deemed importer incurs the customs debt already at the moment of payment of the sale, similar to the provisions on VAT.  However, as this might happen well before the goods physically arrive to the Union, the e-commerce intermediaries can be authorised to notify the real duty incurred and have periodical payments, collected by the Member state of establishment and registration. 

In recent years, customs administrations have demonstrated resilience and reactivity in dealing with crises. Crisis situations require specific responses – that can be stricter, or more flexible allowing for exceptions – but must be applied similarly across the EU. Title XI includes crisis provisions directly in the Union Customs Code. For different crisis scenarios the EU Customs Authority will develop protocols and procedures, such as application of common risk criteria, appropriate mitigation measures and collaboration framework, and ensure their application and implementation, upon a decision to be taken by the Commission via an implementing act.

Up to now, the EU was lacking a clear structure to operationally manage the Customs Union that is ready for the challenges of our time. In title XII, the regulation establishes the EU Customs Authority, its tasks, responsibilities and governance. The Commission my entrust the Authority to develop and operate the EU Customs Data Hub. It will conduct the EU level risk management and will issue control recommendations to the national customs authorities. Both functions are fundamental for increasing customs capabilities across the Union, and to take the Customs Union to the next level. The EU Customs Authority will also actively coordinate customs action across the EU and implement political priorities for the functioning of the Customs Union. The EU Customs Authority will cooperate at EU level with other agencies, bodies and networks such as EUROPOL, FRONTEX or ECHA. It will also facilitate the cooperation between administrations, including the work of expert groups, training and the exchange of staff between countries. 

In accordance with recent case law of the Court of Justice 38 , the competence to determine the location of the seat of an EU agency lies with the EU legislature, which must act to that end in accordance with the procedures laid down by the substantively relevant provisions of the Treaties. The Commission considered it appropriate to leave open the name of the hosting city in its proposal. Criteria to be taken into account in order to contribute to the decision-making process and based on the Common Approach are provided in a recital stating the reasons for the relevant Article. The seat selection should be based on a transparent application process to be concluded before the end of the legislative procedure. Applications should be submitted by Member States given that hosting an EU decentralised agency requires a clear commitment by the Member State in question.  The Commission is ready to assist in the evaluation of these criteria and will actively cooperate with the co-legislators on the selection of the seat, in light of the ECJ judgment of 14 July 2022 and in compliance with its institutional responsibility.

To fulfil its mission, customs authorities cooperate closely and regularly with market surveillance authorities, sanitary and phytosanitary control authorities, law-enforcement authorities and bodies, border management authorities, environmental protection bodies, experts on cultural goods, and many other authorities in charge of sectoral policies. Title XIII provides for a new cooperation framework for structured collaboration between customs and those authorities covering four areas: the rules and legislation, data exchange, strategy building and coordinated action. Such cooperation will develop common supervision and control strategies to address the specific problems. The actions customs can take supporting other policy areas are better defined, allowing sectoral legislation to refer to the Customs Code. International cooperation and customs diplomacy are more important, and the cooperation with partners is strengthened and can include the exchange of customs data.  

National practices on customs infringements and their sanctions differ significantly between Member States, leading to divergences in treatment and distortions of goods. In title XIV, the reform introduces a minimum common core of acts or omissions that constitute customs infringements and a minimum common core of non-criminal sanctions, as well as common principles, without changing the procedural legal order of Member States, and allowing them to provide for additional customs infringements and to add national sanctions. Customs infringements that concern more than one Member State require the cooperation of the authorities. The EU Customs Data Hub will collect all decisions linked to customs infringements and their sanctions for transparency purposes. 

The final provisions in title XV include a timeline for the continuation of the current practice with customs declarations to the national systems, and the transition towards the new system. The EU Customs Data Hub will be developed gradually, starting with the new approach for e-commerce. Traders can start using the EU Customs Data Hub as of January 2032, and would be obliged to do so by 2037, when it will be fully operational. The EU Customs Authority will be gradually established and shall assume its tasks from 2028. 

2023/0156 (COD)

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

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 33, 114 and 207 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee 39 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)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 Council 40  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.

(2)The implementation of Regulation (EU) No 952/2013 has disclosed weaknesses in several areas. These include: the insufficient/ineffective action in ensuring the protection of the Union and its citizens against non-financial risks applicable to goods established by Union policies other than customs legislation; the capacity of customs authorities to effectively handle the increasing volume of goods imported from third country via distance sales (e-commerce transactions); the capacity of the IT systems architecture created by Regulation (EU) No 952/2013 to digitalise customs processes to keep up with the pace of technological progress, namely with technologies based on the exploitation of data; the lack of effective governance structures of the customs union, resulting in divergent practices and non-uniform implementation of the rules in the Member States. Those weaknesses lead to the emergence of obstacles to the proper functioning of the customs union and therefore of the internal market, due to the internal and external risks and threats.

(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. 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.

(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 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.

(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 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. 

(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 the mission customs authorities have to perform by indicating more accurately their objectives and tasks.

(7)Certain definitions set out in Regulation (EU) No 952/2013 should be adapted to take account of the broader scope of this Regulation, to align them with those set out in other Union acts, and to clarify terminology having different meanings in different sectors. New definitions should be included in customs legislation to clarify the roles and responsibilities of certain actors in the customs processes. In the case of the importer and the exporter, new definitions should make those persons liable for compliance of the goods, including for financial and non-financial risks, in order to strengthen customs supervision. In the case of the new concept of deemed importer, new definitions should ensure that in some cases, in the context of an online sale from outside the Union, an economic operator, as opposed to the consumer, is considered the importer and assumes the corresponding responsibilities. New definitions should also be introduced in relation to the broader scope of the provisions of customs supervision, risk management and customs controls.

(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.  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.

(9)In order to increase legal clarity, certain rules regarding customs decisions should be amended. First, it is appropriate to clarify that the competent customs authority for taking a customs decision is the one of the place where the applicant is established, because the establishment becomes the main principle according to which certain economic operators, at certain conditions and in a pre-determined time frame, subject to review, can benefit from the simplifications introduced by this Regulation and pay customs duties where they are established. Second, the time limit of maximum 30 days by which an applicant is to provide additional information to customs authorities in cases the latter considers that the application for a decision does not contain all the information required, should also be included for the sake of completeness and legal clarity.

(10)The consequence of the failure of a customs authority to take a decision upon application within the established time-limits should be clarified. The principle that in such case the application is deemed to be subject to a negative decision and that the applicant may lodge an appeal, in accordance with the general rule on customs decisions should also be established.

(11)As highlighted by the European Court of Auditors 41 and in the evaluation of the implementation of Regulation (EU) No 952/2013, it is also desirable to address the lack of uniform monitoring of compliance of the criteria and obligations set out in customs decisions, by reinforcing the relevant provisions. On one side, the holders of decisions should not only comply with obligations set out in the relevant decision but also monitor on a constant basis their compliance and provide for an internal organisation where such [self-]monitoring activities can prevent, mitigate or remedy any possible errors in their customs processes. On the other side, customs authorities should regularly monitor the implementation of customs decisions by the holders of such decisions, in particular when these are established for less than 3 years and are therefore potentially more prone to pose risks, in order to ensure that that person complies with the obligations established by the customs decisions. This is particularly relevant when those persons benefit from specific status such as that of Authorised Economic Operator (AEO) or Trust and Check trader, who enjoy several facilitations in customs processes. In addition, in order to strengthen risk management at Union level, customs authorities should notify the EU Customs Authority of all decisions taken upon application and inform that Authority about the monitoring activities, so that this information can be taken into account for risk management purposes.

(12)In addition to the decisions relating to binding tariff information (BTI decisions), or decisions relating to binding origin information (BOI decisions) adopted by customs authorities upon application and subject to certain conditions, decisions relating to binding valuation information (BVI decisions) have been introduced in customs legislation through Commission Delegated Regulation (EU) …/…. 42 . In the interest of the users of customs legislation, it is appropriate to lay down the rules regarding those three types of decisions relating to binding information in the same legal act.

(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. 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.

(14)The obligations of the deemed importers, which are different from the obligations applicable to [the rest of] importers, should also be clarified. In particular, it should be provided that the deemed importer should provide to the customs authorities not only the data necessary for the release for free circulation of the sold goods but also the information that the deemed importer must collect for VAT purposes. This information is detailed in Council Implementing Regulation (EU) No 282/2011 43 . 

(15)Economic operators meeting certain criteria and conditions to be considered compliant and trustworthy traders by customs authorities can be granted the status of AEO and thereby benefit from facilitations in customs processes. While ensuring that the traders dealing with most of Union trade are trustworthy, the AEO scheme suffers from certain weaknesses highlighted in the evaluation of Regulation (EU) No 952/2013 and in the findings of the European Court of Auditors. To deal with those concerns, in particular about the divergent national practices and challenges regarding AEO compliance monitoring, the rules should be amended to introduce the customs authorities’ obligation to monitor compliance at least every 3 years.

(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. 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.

(17)The changes in the customs processes also require clarifying the role of customs representatives. Both direct and indirect representation should continue to be possible but it should be clarified that the indirect representative of an importer or an exporter assumes all the obligations of importers or exporters, not only the obligation to pay or guarantee the customs debt but also the respect of other legislation applied by the customs authorities. For that reason, customs representatives must be resident in the customs territory of the Union where they represent importers or exporters, to ensure proper accountability for financial and non-financial aspects. The use of an indirect customs representative established in the Union is therefore an available and proportionate alternative for importers and exporters who do not have a commercial presence in the Union. Moreover, customs representatives established in third countries can continue providing their services in the Union where they represent persons who are not required to be established within the customs territory of the Union.

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

(19)In line with recent case-law of the European Court of Justice 44 , it is appropriate to clarify that the automated exchange of information between economic operators and customs authorities through and by the EU Customs Data Hub does not exclude the responsibility of those authorities or of those operators in relation to the customs processes concerned. Even where the customs authorities’ involvement is limited to that electronic communication via the EU Customs Data Hub, it should be considered that a measure is adopted by those authorities, as if the EU Customs data Hub acted on behalf of the said authorities. 

(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, 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 Council 45 and the European Interoperability Framework 46 , 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.

(21)Alongside the EU Customs Data Hub, Member States may develop their own applications to use data from the EU Customs Data Hub. For that purpose, and to decrease the time to market, Member States may entrust the EU Customs Authority with the finances and the mandate to develop such applications. In that case, the EU Customs Authority should develop the applications for the benefit of all Member States. This could be done by creating open-source code applications following the Share and Reuse Framework.

(22)The EU Customs Data Hub should enable the following flow of data. Economic operators should be able to submit to or make available in it all relevant data required to fulfil customs legislation. That data should be processed at Union level and be enriched with Union-wide risk analysis. The resulting data should be made available for Member State’s customs authorities, which would use the data to fulfil their obligations. Finally, the outcome of the controls performed following the retrieval of data from the EU Customs Data Hub should be reported back to that Data Hub.

(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 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.

(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 Council 47 and Council Regulation (EC) No 515/97 48 . 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 Council 49 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 Council 50 . 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.

(25)The rules and provisions regarding access to EU Customs Data Hub and exchange of information should not affect the Customs Information System (‘CIS’) established by Council Regulation (EC) No 515/97 and reporting obligations under Article 24 of Regulation (EU) 2019/1896 of the European Parliament and of the Council on the European Border and Coast Guard.

(26)The Commission should lay down the modalities for access of all these authorities in implementing rules, after assessing the existing safeguards that each authority or category of authorities has in place for ensuring the correct treatment of personal and commercially sensitive data.

(27)It is appropriate that the EU Customs Data Hubs stores personal data for a maximum period of 10 years. This period is justified in light of the possibility for customs authorities to notify the customs debt up to 10 years after having received the necessary information about a consignment, as well as to ensure that the Commission, the EU Customs Authority, OLAF, customs and authorities other than customs can cross-check the information in the EU Customs Data Hub against the information stored in and exchanged with other systems. Moreover, this period of time should be aligned with the storage period required by other legislation applied by the customs authorities, where such legislation is relevant for customs controls. It is also appropriate that whenever personal data is required for the purposes of judicial and administrative proceedings, investigations and during post-clearance controls, the retention period is suspended to avoid that personal data is erased and cannot be used for those purposes.

(28)The protection of personal and other data in the EU Customs Data Hub should also include rules on the restriction of rights of data subjects. It is therefore appropriate that the customs authorities, the Commission or the EU Customs Authority could restrict the right of data subjects where necessary to ensure that enforcement activities, risk analysis and customs controls are not jeopardised. Moreover, such restrictions could also be applied where necessary for the purpose of protecting judicial or administrative proceedings following enforcement activities. The restrictions should be duly justified against the activities and prerogatives of customs and limited to the time necessary to preserve those prerogatives.

(29)Any processing of personal data under this Regulation should be carried out in compliance with the provisions of Regulation (EU) 2016/679, Regulation (EU) 2018/1725 of the European Parliament and of the Council, or Directive (EU) 2016/680 of the European Parliament and of the Council, within their respective scope of application.

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

(31)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.

(32)It is therefore appropriate to introduce Union-level risk management activities and provisions to ensure the collection at Union level of comprehensive data relevant for risk management including results and evaluation of all controls. It provides for common risk analysis and the issue of corresponding Union control recommendations to customs authorities. Those control recommendations should be implemented, or reasons provided as to why they were not applied. The possibility to issue an instruction that goods destined for the Union may not be loaded or transported should also be provided for. The analysis of Union-level risks and threats should be based on constantly updated Union-level data and should identify the measures and controls to be performed at the border crossing points of entry and exit of the Union territory. In the context of cooperation with law enforcement and security authorities in particular, Union-level risk management should, where possible, contribute to and benefit from strategic analyses and threat assessments conducted at Union level, including those carried out by the European Union Agency for Law Enforcement Cooperation (Europol) and the European Border and Coast Guard Agency (Frontex) to contribute to the efficient and effective prevention of, and the fight against, crime. 

(33)The process of placing goods in a customs procedure needs to be revisited to reflect the new roles and responsibilities of the persons involved in the procedure. Thus, the responsibility for providing the information to the customs authorities is to be assumed by the person responsible for the goods: the importer, the exporter or the holder of the transit procedure, as opposed to the declarant. They should provide or make available the data to customs as soon as this is available and in any case before the release of the goods for a customs procedure, in order to allow the customs authorities to carry out a risk analysis and to take appropriate measures. As the deemed importers in e-commerce have a higher volume of transactions and the obligation to calculate the customs debt at the moment of the sale, as opposed to the moment in which goods are released, it is appropriate to adapt the timing of their reporting obligation. Deemed importers should therefore provide data on their sales of goods to be imported at the latest on the day after the acceptance of the payment. By contrast, in duly justified circumstances, the customs authorities should be able to authorise Trust and Check traders to complete the data on their released goods at a later stage, as these traders constantly share data on their transactions with customs and should be considered reliable. Such circumstances could be the impossibility of determining the final customs value of the goods at the moment of release because it is linked to a futures contract, or the need to obtain the relevant supporting documents without these having an impact on the calculation of the customs debt.

(34)To simplify the customs process for the entry of goods into the customs territory of the Union while ensuring that there is a single person responsible for those goods, different actors in the supply chain should provide their part of the relevant information on the goods concerned and link it to a specific consignment. Goods should enter only if there is an importer established in the Union that takes the responsibility for those goods. The importer should provide information on the goods to customs and the customs procedure to which they should be placed, at the earliest possible stage, if possible before the goods physically arrive. A service provider or customs agent should be able to provide the information on the importer’s name and behalf, but the importer remains responsible for ensuring compliance of the goods with the financial and non-financial risks. The carriers effectively bringing the goods should also provide some information on the goods before loading or arrival (‘advance cargo information’) and should link their information to the importer’s information where this has been previously submitted, without necessarily having access to all the data that the importer has provided. In addition, to cater for the more complex supply chains and transport networks, other persons may be required to complete the information on the goods to be brought to the customs territory of the Union. The importer, the carrier or any other person submitting information to customs should be obliged to amend it where they know that the information is no longer correct but before the customs authorities have detected irregularities that they would like to control.

(35)The customs authorities responsible for the place of first entry of the goods should carry out a risk analysis of the available information on those goods and be entitled to take a wide range of mitigation measures if they detect a risk, including requesting controls before loading or upon arrival of the goods to the customs territory of the Union, by another customs authority or by other authorities. The carrier is generally in the best position to know when the goods have arrived so they should notify customs of such arrival. However, to cater for the more complex supply chains and transport networks, other persons may be required to notify the arrival of the goods to the customs authorities for their risk analysis. In order to ensure that the customs authorities have advance cargo information on all goods brought to the customs territory of the Union, the carrier should be prevented from unloading goods for which there is no information, unless the customs authorities have requested the carrier to present the goods or there is an emergency situation requiring the unloading of the goods. By contrast, to smoothen the process of entry of goods for which the customs authorities have the appropriate advance cargo information, the carrier should not be required to present the goods to customs in all cases but only where the customs authorities so request or where other legislation applied by the customs authorities so requires.

(36)The non-Union goods that are brought to the customs territory of the Union should be considered to be in temporary storage from the moment the carrier notifies their arrival until their placement under a customs procedure unless they are already placed in transit. To ensure appropriate customs supervision, this situation should be limited in time. It should not last more than 10 days, except in exceptional cases. If the importer needs to store the goods for a longer period, the goods should be in a customs warehouse, where the goods can be stored without time limit. The existing authorisations for temporary storage locations should therefore be converted into customs warehouse authorisations if the relevant requirements are met.

(37)It is necessary to maintain the rules that determine whether the goods are Union or non-Union goods and whether the status of Union goods can be presumed or needs to be proven, particularly where the goods temporarily leave the customs territory of the Union.

(38)Once the customs authorities have the information necessary for the relevant procedure, based on risk analysis, they should decide whether to perform further controls on the goods, to release them, to refuse or suspend their release or to let the time pass so the goods are considered released. The customs authorities should do so in cooperation with other authorities, where necessary. Accordingly, the customs authorities should refuse the release of the goods where they have evidence that the goods do not comply with applicable legal requirements. Where the customs authorities need to consult other authorities to determine whether or not the goods comply, they should suspend the release at least until the consultation takes place. In these cases, the customs authorities’ subsequent decision on the goods should depend on the other authorities’ reply. To avoid blocking both traders and authorities in the cases in which concluding on compliance requires some time, the customs authorities should have the possibility to release the goods on the condition that the trader continues informing about the location of the goods for a maximum of 15 days. Finally, in order to provide legal certainty to the traders that have provided the information on time without obliging the customs authorities to react to every consignment, the goods that have not been selected for a control after a reasonable period of time should be considered released. The Commission should be entitled to define this period of time in delegated rules, adapting it, where necessary, to the type of traffic or type of border crossing points.

(39)To the extent that Trust and Check traders provide customs full access to their systems, records and operations and are considered reliable, they should be able to release their goods under the supervision of the customs authorities but without waiting for their intervention. Accordingly, Trust and Check traders should be able to release goods for any entry procedure at receipt at final destination of the goods or for any exit procedure at the place of delivery of the goods. As the Trust and Check traders are considered transparent, the arrival and/or the delivery should be properly recorded in the EU Customs Data Hub. These operators should be obliged to inform the customs authorities where a problem arises so that those authorities can take a final decision on the release. Where the internal controls systems of the Trust and Check traders are robust enough, the customs authorities should be able, in cooperation with other authorities, to authorise the traders to perform certain checks on their own. However, the customs authorities should retain the possibility to control the goods at any time. 

(40)It is appropriate to provide measures to regulate the transition from a system based on customs declarations to a system based on the provision of information to the central EU Customs Data Hub. Operators should have the possibility to lodge customs declarations to declare their intention to place goods under customs procedure during the transition period. However, as soon as the capabilities of the EU Customs Data Hub are available, operators should also be given the possibility to provide or make available information to the customs authorities through the EU Customs Data Hub, and the customs authorities should no longer authorise any operator to apply for simplifications in relation to the customs declaration. At the end of the transition period, all the authorisations should cease to be valid, as customs declarations will no longer exist.

(41)Article 29 of the Treaty on the Functioning of the European Union (TFEU) requires that products coming from third countries are to be considered in free circulation if the import formalities have been complied with and customs duties or charges having equivalent effect have been levied. However, the release for free circulation should not be understood as a proof of compliance with other legislation applied by the customs authorities when the latter imposes specific requirements for goods to be sold or consumed in the internal market.

(42)The process of taking goods outside the customs territory of the Union should be streamlined and simplified, in line with the entry process. Thus, it is appropriate to require that there a person established in the Union should be responsible for the goods, that is the exporter. The exporter should provide or make available to customs the relevant information prior to taking the goods out of the Union, indicating whether these are Union or non-Union goods to be exported, and adapting the information necessary. In order to simplify the process and avoid potential loopholes, the concept of export should include the exit of non-Union goods, thereby encompassing also the concept of ‘re-export’, which was previously regulated as a separate concept.

(43)To ensure that there is proper risk management of the goods taken out of the customs territory of the Union, the customs office responsible of export should be required to carry out a risk analysis of the information on the goods and to take or request the appropriate measures before the goods exit. Those measures should include requesting controls to be carried out by the customs office responsible for the place of dispatch of the goods and the customs office of exit and, if necessary, by other authorities, in addition to the measures provided under the release for a customs procedure, which are also applicable where the goods are to be placed under export.

(44)To ensure that the duty-suspensive procedures are also transparent, it is appropriate to streamline the requirements provisions for the authorisations for special procedures. In particular, for the sake of clarity and legal certainty, the conditions for determining whether an opinion at Union level is necessary to assess if granting an authorisation could adversely affect the interests of Union producers, the so-called examination of the economic conditions, should be codified rather than being regulated in delegated rules. Moreover, as the effect on the Union producers’ interests may depend on the quantity of goods that are placed under the special procedure, the EU Customs Authority should be entitled to propose a certain threshold under which it is estimated that there is no negative effect on the Union producers’ interests.

(45)Article 9 of the Revised Convention for the Navigation of the Rhine refers to an Annex (Rhine Manifest) that facilitated the movement of goods on the Rhine river and its associated tributaries by considering them as a customs transit procedure across national frontiers of five Member States. 51  According to information from customs administrations, the Rhine Manifest is not used in practice anymore as a customs transit procedure in the states bordering the Rhine. Instead, goods on the Rhine and its tributaries are now transported using the Union transit procedure established by the Code, through the New Computerised Transit System (NCTS). It is therefore appropriate to remove the reference to the Rhine Manifest from the cases where a movement of goods is considered as external transit or as Union transit.

(46)In order to increase transparency about the person responsible for complying with the obligations of the Union transit procedure and with the content and risks related to the consignment, it is appropriate to require that the holder of the transit procedure disclose at least information regarding the importer or the exporter motivating the movement, the means of transport, and the identification of the goods placed under that procedure. Such information would enable the customs authorities to supervise more effectively the Union transit procedure concerned and to carry out a risk analysis. The Union transit procedure should be compulsory unless goods are put under another customs regime immediately upon entry into or exit out of the customs territory of the Union. In the case that the importer or the exporter is not yet known, the holder of the goods should be considered as being the importer or the exporter of the goods and should be liable for the payment of customs duties and other taxes and charges. The Union transit procedure should be replaced by customs supervision if goods are imported or exported by a Trust and Check trader.

(47)An amendment to Annex 6 to the Customs Convention on the International Transport of Goods under Cover of TIR Carnets (‘TIR Convention’) 52 that entered into force on 1 June 2021 modified the Explanatory Note 0.49 in order to grant to economic operators meeting certain requirements the possibility to become an ‘authorised consignor’, mirroring the existing facilitations granted to the economic operators recognised as an ‘authorised consignee’. It is therefore necessary to include the new possibility established by the TIR Convention in order to align the Union customs legislation with that international agreement.

(48)Applying the standard rules for duty calculation in e-commerce transactions would, in many cases, result in a disproportionate administrative burden both for the customs administrations and economic operators in particular in respect of the collection of revenues. In the interest of developing a robust and effective fiscal and customs treatment for goods imported from third countries via e-commerce transactions (‘distance sales of imported goods’), Union legislation is to be amended in order to remove the threshold under which goods of negligible value not exceeding EUR 150 per consignment are exempted from customs duties at import in accordance with Council Regulation (EC) No 1186/2009 53 , and to introduce a simplified tariff treatment for distance sales of imported goods from third countries in accordance with Council Regulation (EEC) No 2658/87 54  (Combined Nomenclature). In light of these proposed amendments, certain rules of the Code on tariff classification, origin and customs value should be amended to provide for the simplifications applicable on a voluntary basis by the deemed importer when determining the customs duty in a business-to-consumer transaction qualifying as distance sales for VAT purposes. The simplifications should consist in the possibility to calculate the customs duty due by applying one of the new bucket tariffs in the Combined Nomenclature to a value calculated in a simpler way. Under the simplified rules for business-to-consumer e-commerce transactions, the net purchase price without VAT but including the total transport costs until the final destination of the product should be considered as the customs value and no origin should be required. However, if the deemed importer wishes to benefit from preferential tariff rates by proving the originating status of the goods, that person can do so by applying the standard procedures.

(49)Currently, customs debts are collected by the Member State where the customs declaration is lodged. It is the choice of the trader whether to do this in the country of first entry, or to use a transit procedure and pay duties in another Member State. In 2025, this system is due to change with the roll-out of a centralised clearance IT system, which will allow Authorised Economic Operators to lodge the customs declaration in the Member State where they are established. In view of this development, it is appropriate to amend the rules defining the place where the customs debt occurs so that the import duties are paid to the Member State where the importer is established because this is the place where the customs authority can have the most complete knowledge about the records, operations and commercial behaviours of economic operators, in particular where those economic operators are granted the status of Trust and Check traders. However, it is appropriate that the customs debt of operators that are not Trust and Check traders is incurred at the place where the goods are physically located, at least until the supervision model is evaluated.

(50)In the case of e-commerce transactions, it is essential to ensure that a customs debt is paid correctly by the online intermediaries, such as internet platforms, that manage the online sale of goods to private consumers. It is therefore appropriate to clarify that the deemed importer is the person responsible for the customs debt, which would be incurred at the moment the buyer pays the e-commerce operator, in most cases, an internet platform. To simplify the burden related to such obligation, the deemed importer may be authorised to determine the import duty due and to pay its customs debts periodically, and the customs authorities should be able to have a single entry in the accounts for the purposes of the Union budget.

(51)It is appropriate to enhance the mechanism aimed at supervising more efficiently the implementation of the restrictive measures on the flow of goods that can be adopted by the Council in accordance with Article 215 TFEU. In such a case, the EU Customs Authority should provide support to the Commission and Member States to ensure that those measures are not circumvented. Customs authorities should ensure that they take all the necessary steps to comply with the measures and should inform the Commission and the EU Customs Authority accordingly.

(52)A crisis management mechanism should be put in place to address potential crises in the customs union. The lack of such a mechanism at Union level was highlighted in the Customs Action Plan 55 . A mechanism should therefore be established that involves the EU Customs Authority as a pivotal actor in preparing, coordinating and monitoring the implementation of the practical measures and arrangements that the Commission decides to put in place when a crisis occurs. The EU Customs Authority should maintain the crisis response readiness on a permanent basis during the whole duration of the crisis.

(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. 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.

(54)The EU Customs Authority should be governed and operated on the basis of the principles of the Joint Statement and common approach of the European Parliament, the Council and the Commission on decentralised agencies of 19 July 2012. 56

(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 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 […].

(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.

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

(58)To fulfil their mission, customs authorities cooperate closely and regularly with market surveillance authorities, sanitary and phytosanitary control authorities, law-enforcement bodies, border management authorities, environmental protection bodies, experts on cultural goods, and many other authorities in charge of sectoral policies. Considering the evolution of the single market and the evolving role of customs, the increase in prohibitions and restrictions and e-commerce, it is necessary to structure and reinforce this cooperation at national, Union and international level. Instead of a cooperation focused on individual consignments or specific events along the supply chain, a structured cooperation framework between customs authorities and other authorities responsible for relevant policy areas should be established. Such cooperation framework should include the following aspects: the development of legislation and of policy needs in a specific area, the exchange and analysis of information, the building of overall cooperation strategy in the form of joint supervision strategies and, finally, cooperation on operational implementation, monitoring and controls. The Commission should also facilitate the application of part of the other legislation applied by the customs authorities by drawing a list of Union legislation imposing requirements on goods subject to customs controls aimed at protecting public interests such as human, animal or plants health and life, the consumers and the environment.

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

(60)In an increasingly connected world, customs diplomacy and international cooperation are important aspects in the work of customs authorities around the world. International cooperation should envisage the possibility of exchange of customs data, on the basis of international agreements or autonomous legislation of the Union, through appropriate and secure means of communication, subject to the respect of confidential information and the protection of personal data, such as through the EU Customs Data Hub. 

(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.

(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 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.

(63)It is necessary to establish a minimum common core of customs infringements by defining them, based on the obligations laid down in this Regulation and to identical obligations provided for in other parts of the customs legislation.

(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.

(65)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. 

(66)In accordance with the principle of proportionality, it is necessary and appropriate, for the achievement of the basic objectives of enabling the customs union to function effectively and implementing the common commercial policy, to lay down the rules and procedures applicable to goods brought into or taken out of the customs territory of the Union. This Regulation does not go beyond what is necessary to achieve the objectives pursued, in accordance with Article 5(4) of the Treaty on European Union.

(67)In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the following:

–in relation to the special fiscal territories, more detailed provisions of customs legislation to address particular circumstances pertaining to the trade in Union goods involving only one Member State;

–in relation to customs decisions, the conditions, time limits, exceptions, modalities for monitoring, suspension, annulment and revocation relating to the application, issuance and management of such decisions, including those relating to binding information;

–the minimum data requirements and specific cases for the registration of economic operators with the customs authorities responsible for the place where they are established;

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

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

–in relation to the customs representative, the conditions under which such person may provide services in the customs territory of the Union, the cases in which the requirement of being established therein is waived and in which the evidence of empowerment is not required by the customs authorities;

–the categories of data subjects and the categories of personal data that may be processed in the EU Customs Data Hub;

–more detailed rules in relation to the customs status of goods;

–the type of data and time limits for providing such data for placing goods under a customs procedure;

–the reasonable period of time after which the customs authorities shall be deemed to have released the goods where they have not selected them for any control w;

–in relation to customs declarations: the cases where a customs declaration may be lodged using means other than electronic data-processing techniques; the conditions for granting the authorisation to lodge simplified declarations; the time limits for lodging supplementary declarations and the cases in which the obligation to lodge such declarations are waived; the cases of invalidation of the customs declaration by customs authorities; the conditions for granting the authorisations for centralised clearance and entry into the declarant’s records;

–the conditions and the procedure for confiscating goods;

–in relation to the advance cargo information: the additional data to be provided, the time limits, the case where the obligation to provide such data is waived, the specific cases in which data can be provided by multiple persons, the conditions under which a person who provides or makes available information may restrict the visibility of its identification to one or more other persons which also lodge particulars;

–in relation to the entry of the goods into the customs territory of the Union: the time-limits within which the risk analysis is to be carried out and the necessary measures are to be taken; the specific cases and the other persons who may be required to notify the arrival of the consignments to the actual customs of first entry, in case of diversion; the conditions for designating and approving the places other than the designated customs office for presenting the goods; the conditions for designating or approving the places other than customs warehouses for placing the goods in temporary storage;

–the data to be provided or to be made available to the customs authorities for placing goods under a release for free circulation;

–the cases in which goods are considered to be returned in the state in which they were exported and in which goods which have benefited from measures laid down under the common agricultural policy can be granted relief from import duty;

–in relation to the pre-departure information at exit from the customs territory of the Union: the minimum pre-departure information and the time limits within which the pre-departure information is to be provided or made available before the goods are taken out, the specific cases in which the obligation to provide or make available pre-departure information is waived and the information to be notified on the exit of the goods;

–in relation to the exit of goods, the time-limits within which risk analysis is to be carried out and the necessary measures are to be taken; the data to be provided or made available to the customs authorities for placing goods under the export procedure;

–in relation to special procedures: the data to be provided or made available to the customs authorities for placing goods under such procedures; the exceptions to the conditions for granting an authorisation for special procedures; the cases in which the economic nature of the processing justifies that the customs authorities assess whether granting an authorisation for an inward processing procedure adversely affects the essential interest of the Union producers without the opinion of the EU Customs Authority; the list of goods considered as sensitive; the time limit for discharging a special procedure; the cases and conditions under which importers and exporters may move goods placed under a special procedure other than transit or in a free zone; the usual forms of handling for goods placed under customs warehousing or a processing procedure; the more detailed rules related to equivalent goods;

–in relation to transit: the specific cases where Union goods are to be placed under the external transit procedure; the conditions for the granting of the authorisations for authorised consignor and authorised consignee for TIR purposes; the additional data requirements to be provided by the holder of the Union transit procedure;

–in relation to storage: the minimum data to be provided by the operator of a customs warehouse or a free zone; the conditions for granting the authorisation for the operation of customs warehouses;

–in relation to temporary admission: the requirements for total or partial duty relief laid down in the customs legislation that are to be met for using the temporary admission procedure;

–the rules for the determination of non-preferential origin and the rules on preferential origin;

–the conditions for granting the authorisation for simplifications in the determination of the customs value in specific cases;

–in relation to customs debt: more detailed rules for the calculation of the amount of import or export duty applicable to goods for which a customs debt is incurred in the context of a special procedure; the specific time-limit within which the place where the customs debt is incurred cannot be determined if the goods have been placed under a customs procedure which has not been discharged or when a temporary storage did not end properly; more detailed rules related to the notification of customs debt; rules for

–the suspension of the time-limit for payment of the amount of import or export duty corresponding to a customs debt and for determining the period of suspension; the rules with which the Commission has to comply when taking a decision on repayment and remission of customs debt; the list of failures with no significant effect on the correct operation of the temporary storage or of the customs procedure concerned, for the extinguishment of the customs debt;

–in relation to guarantees: the specific cases in which no guarantee is required for goods placed under the temporary admission procedure, the rules for determining the form of the guarantee other than any means of payment recognised by the customs authorities and an undertaking given by a guarantor; the rules concerning the forms for the provision of a guarantee and the rules applicable to the guarantor; the conditions for the granting of an authorisation to use a comprehensive guarantee with a reduced amount or to have a guarantee waiver; the time-limits for the release of a guarantee;

–in relation to customs cooperation, any other complementary measure to be taken by the customs authorities to ensure compliance with legislation other than customs; the conditions and procedures according to which a Member State can be empowered to enter into negotiations with third countries on exchange of data for the purpose of customs cooperation;

–to delete or modify the derogations for the identification of the customs office competent for supervising the placement of the goods under a customs procedure and of the place for the incurrence of the customs debt, in light of the assessment to be made by the Commission on the effectiveness of the customs supervision as established by this Regulation.

(68)It is of particular importance that the Commission carry out appropriate consultations during the preparatory work for the adoption of delegated acts, including at expert level and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making 57 .

(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 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 Council 58 .

(70)The advisory procedure should be used for the adoption of: implementing acts requesting Member States to revoke decisions relating to binding information, given that those decisions affect only one Member State and aim at ensuring compliance with the customs legislation; implementing acts to determine the specific details for the access of authorities other than customs to specific services and systems of the EU Customs Data Hub; implementing acts 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, as they affect only one Member State; implementing acts on repayment or remission of an amount of import or export duty given that those decisions directly affect the applicant for that repayment or remission.

(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.

(72)The Commission should make every effort to ensure that the delegated and implementing acts provided for in this Regulation enter into force sufficiently in advance of the application date of the Code to allow its timely implementation by Member States.

(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 for distance sales and deemed importer should apply from 1 January 2028.

(74)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,

HAVE ADOPTED THIS REGULATION:

Title I
GENERAL PROVISIONS

Chapter 1
Scope of customs legislation and mission of customs

Article 1

Subject matter and scope

1.This Regulation establishes the Union Customs Code (‘the Code’). It lays down the general rules and procedures applicable to goods brought into or taken out of the customs territory of the Union. 

This Regulation also establishes the European Union Customs Authority (‘the EU Customs Authority’) and the rules, common standards and a governance framework for the establishment of the European Union Customs Data Hub (‘EU Customs Data Hub’).

2.Without prejudice to international law and conventions, and Union legislation in other fields, the Code shall apply uniformly throughout the customs territory of the Union.

3.Certain provisions of the customs legislation may apply outside the customs territory of the Union within the framework of legislation governing specific fields or of international conventions.

4.Certain provisions of the customs legislation, including the simplifications for which it provides, shall apply to the trade in Union goods between parts of the customs territory of the Union to which the provisions of Council Directive 2006/112/EC 59 or of Council Directive (EU) 2020/262 60  apply and parts of that territory where those provisions do not apply, or to trade between parts of that territory where those provisions do not apply.

Article 2

Mission of customs authorities

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.

Customs authorities shall put in place measures aimed, in particular, at the following:

(a)ensuring the proper collection of customs duties and other charges;

(b)ensuring that goods presenting a risk for the safety or the security of citizens and residents do not enter the customs territory of the Union, by putting in place the appropriate measures for controls of goods and supply chains;

(c)contributing to protecting human, animal or plant health and life, environment, consumers and other public interests protected by other legislation applied by the customs authorities, in close cooperation with other authorities by ensuring that goods presenting related risks do not enter or leave the customs territory of the Union;

(d)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;

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

Article 3

Customs territory

1.The customs territory of the Union shall comprise the following territories, including their territorial waters, internal waters and airspace:

(a)the territory of the Kingdom of Belgium,

(b)the territory of the Republic of Bulgaria,

(c)the territory of the Czech Republic,

(d)the territory of the Kingdom of Denmark, except the Faroe Islands and Greenland,

(e)the territory of the Federal Republic of Germany, except the Island of Heligoland and the territory of Büsingen (Treaty of 23 November 1964 between the Federal Republic of Germany and the Swiss Confederation),

(f)the territory of the Republic of Estonia,

(g)the territory of Ireland,

(h)the territory of the Hellenic Republic,

(i)the territory of the Kingdom of Spain, except Ceuta and Melilla,

(j)the territory of the French Republic, except the French overseas countries and territories to which the provisions of Part Four of the TFEU apply,

(k)the territory of the Republic of Croatia,

(l)the territory of the Italian Republic, except the municipality of Livigno,

(m)the territory of the Republic of Cyprus, in accordance with the provisions of the 2003 Act of Accession,

(n)the territory of the Republic of Latvia,

(o)the territory of the Republic of Lithuania,

(p)the territory of the Grand Duchy of Luxembourg,

(q)the territory of Hungary,

(r)the territory of the Republic of Malta,

(s)the territory of the Kingdom of the Netherlands in Europe,

(t)the territory of the Republic of Austria,

(u)the territory of the Republic of Poland,

(v) the territory of the Portuguese Republic,

(w)the territory of Romania,

(x)the territory of the Republic of Slovenia,

(y)the territory of the Slovak Republic,

(``)the territory of the Republic of Finland, and

(aa)the territory of the Kingdom of Sweden.

2.The following territories, including their territorial waters, internal waters and airspace, situated outside the territory of the Member States shall, taking into account the conventions and treaties applicable to them, be considered to be part of the customs territory of the Union:

(a)FRANCE

The territory of Monaco as defined in the Customs Convention signed in Paris on 18 May 1963 (Journal officiel de la République française (Official Journal of the French Republic) of 27 September 1963, p. 8679);

(b)CYPRUS

The territory of the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia as defined in the Treaty concerning the Establishment of the Republic of Cyprus, signed in Nicosia on 16 August 1960 (United Kingdom Treaty Series No 4 (1961) Cmnd. 1252).

Article 4

Delegation of powers

The Commission is empowered to adopt delegated acts in accordance with Article 261  supplementing and amending this Regulation by specifying the provisions of the customs legislation that apply to the trade in Union goods referred to in Article 1(4). Those acts may address particular circumstances pertaining to the trade in Union goods involving only one Member State.

Chapter 2
Definitions

Article 5

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(1)‘customs authorities’ means the customs administrations of the Member States responsible for applying the customs legislation and any other authorities empowered under national law to apply certain customs legislation;

(2)‘customs legislation’ means the body of legislation made up of all of the following:

(a)the Code and the provisions supplementing or implementing it adopted at Union or national level;

(b)the Common Customs Tariff;

(c)the legislation setting up a Union system of reliefs from customs duty;

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

(e)Regulation (EU) 2022/2399 of the European Parliament and of the Council 61  and the provisions amending, supplementing or implementing it; 

(3)‘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;

(4)‘commercial policy measures’ means, as part of other legislation applied by the customs authorities, measures adopted pursuant to Article 207 TFEU, other than provisional or definitive anti-dumping duties, countervailing duties or safeguard measures in the form of increased tariffs on specific goods, and including in particular special surveillance measures and safeguard measures in the form or import or export authorisations;

(5)‘person’ means a natural person, a legal person, and any association of persons which is not a legal person, but which is recognised under Union or national law as having the capacity to perform legal acts;

(6)‘economic operator’ means a person who, in the course of that person’s business, is involved in activities covered by the customs legislation;

(7)‘established in the customs territory of the Union’ means:

(a)in the case of a natural person, having his or her habitual residence in the customs territory of the Union;

(b)in the case of a legal person or an association of persons, having its registered office, central headquarters or a permanent business establishment, in the customs territory of the Union;

(8)‘permanent business establishment’ means a fixed place of business, where both the necessary human and technical resources are permanently present and through which a person’s customs-related operations are wholly or partly carried out; 

(9)‘customs decision’ means any act by the customs authorities pertaining to the customs legislation giving a ruling on a particular case, and having legal effects on the person or persons concerned;

(10)‘customs procedure’ means any of the following procedures under which goods may be placed in accordance with the Code:

(a)release for free circulation;

(b)special procedures;

(c)export;

(11)‘customs formalities’ means all the operations which must be carried out by a person and by the customs authorities in order to comply with the customs legislation;

(12)‘importer’ means any person who has the power to determine and has determined that goods from a third country are to be brought into the customs territory of the Union or, except otherwise provided, any person who is considered a deemed importer;

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

(14)‘exporter’ means any person who has the power to determine and has determined that the goods are to be taken out of the customs territory of the Union;

(15)‘customs representative’ means any person appointed by another person to carry out the acts and formalities required under the customs legislation in that person’s dealings with customs authorities;

(16)‘data’ means any digital and non-digital representation of acts, facts or information and any compilation of such acts, facts or information, including in the form of document, sound, visual or audio-visual recording;

(17)‘customs surveillance’ means collecting and analysing information, in relation to goods entering, exiting or passing through the customs territory of the Union in order to monitor these movements at Union level and ensure the uniform application of customs controls, the compliance with customs legislation and other legislation applied by the customs authorities and to contribute to risk analysis and management;

(18)‘risk’ means the likelihood and the impact of an event occurring, with regard to goods moved between the customs territory of the Union and countries outside that territory and to the presence within the customs territory of the Union of non-Union goods, which would:

(a)compromise the financial or economic interests of the Union and its Member States;

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

(c)prevent the correct application of Union or national measures;

(19)‘economic analysis’ means the evaluation or quantification of a policy or an economic phenomenon, to understand how economic factors affect the functioning of a policy, a geographical area, or any group of persons with a view to making better decisions for the future;

(20)‘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;

(21)‘customs supervision’ means action taken in general by the customs authorities with a view to ensuring that customs legislation and, where appropriate, other legislation applied by the customs authorities is observed, or to otherwise contribute to the management of risks related to those goods and their supply chains;

(22)‘customs controls’ means specific acts performed by the customs authorities in order to ensure compliance with the customs legislation and other legislation applied by the customs authorities, or in order to otherwise contribute to the management of risks related to goods and their supply chains; 

(23)‘random controls’ means customs controls based on principles of random sampling, with regard to a population of interest;

(24)‘holder of the goods’ means the person who has physical control of the goods;

(25)‘carrier’ means:

(a)in the context of entry, the person who brings the goods, or who assumes responsibility for the carriage of the goods, into the customs territory of the Union. However,

(i)in the case of combined transportation, ‘carrier’ means the person who operates the means of transport which, once brought into the customs territory of the Union, moves by itself as an active means of transport;

(ii)in the case of maritime or air traffic under a vessel-sharing or contracting arrangement, ‘carrier’ means the person who concludes a contract and issues a bill of lading or air waybill for the actual carriage of the goods into the customs territory of the Union;

(b)in the context of exit, the person who takes the goods, or who assumes responsibility for the carriage of the goods, out of the customs territory of the Union. However:

(i)in the case of combined transportation, where the active means of transport leaving the customs territory of the Union is only transporting another means of transport which, after the arrival of the active means of transport at its destination, will move by itself as an active means of transport, ‘carrier’ means the person who will operate the means of transport which will move by itself once the means of transport leaving the customs territory of the Union has arrived at its destination;

(ii)in the case of maritime or air traffic under a vessel-sharing or contracting arrangement, ‘carrier’ means the person who concludes a contract, and issues a bill of lading or air waybill, for the actual carriage of the goods out of the customs territory of the Union;

(26)‘risk analysis’ means the processing of data, information or documents, including personal data, with a view to the identification or quantification of possible risks, using where relevant analytical methods and artificial intelligence as defined Article 3, point (1), of Regulation (EU) /…/… of the European Parliament and of the Council 62 ; 

(27)‘risk signal’ means the indication of a possible risk based on automated processing operations implementing risk analysis on data, information or documents; 

(28)‘risk analysis result’ means, the determination, in the case of a signal, that a risk is or is not considered present, based on an automatic process or from further human assessment of the risk signal;

(29)‘control recommendation’ means the opinion of a customs authority or of the EU Customs Authority, as regards whether and if so when, where and by which customs authority a customs control is to be carried out, including the identification of possible additional actions other than customs controls;

(30)‘control decision’ means the individual act by which the customs authorities decide a control shall or shall not take place;

(31)‘control result’ means the preliminary and final outcome of a control, including the further action indicated, if any, and the competent authorities concerned with the outcome or action, if any;

(32)‘common priority control area’ means a selection of particular customs procedures, types of goods, traffic routes, modes of transport or economic operators with a view to subjecting them to increased levels of risk analysis and mitigation measures and customs controls during a certain period, without prejudice to other controls usually carried out by the customs authorities;

(33)‘common risk criteria and standards’ means parameters for risk analysis for a risk area and accompanying standards regarding the practical application of the criteria;

(34)‘supervision strategy’ means an approach to handling a specific risk, which aims to balance operational customs supervision efforts and mitigation measures across the supply chain in a proportionate and effective manner;

(35)‘consignment’ means goods, conveyed by one consignor to one consignee, by the same means of transport including multimodal, and coming from the same territory or third country, being of the same type, class or description or being packed together, under the same transport contract;

(36)‘customs status’ means the status of goods as Union or non-Union goods;

(37)‘Union goods’ means goods which fall into any of the following categories:

(a)goods wholly obtained in the customs territory of the Union and not incorporating goods imported from third countries;

(b)goods brought into the customs territory of the Union from third countries and released for free circulation;

(c)goods obtained or produced in the customs territory of the Union, either solely from goods referred to in point (b) or from goods referred to in points (a) and (b);

(38)‘non-Union goods’ means goods other than those referred to in point (46) or which have lost their customs status as Union goods;

(39)‘release of goods’ means the act whereby the customs authorities, or other persons on their behalf, make goods available for the purposes specified for the customs procedure under which they are intended to be placed;

(40)‘entry summary declaration’ means the act whereby a person informs the customs authorities, in the prescribed form and manner and within a specific time-limit, that goods are to be brought into the customs territory of the Union;

(41)‘exit summary declaration’ means the act whereby a person informs the customs authorities, in the prescribed form and manner and within a specific time-limit, that goods are to be taken out of the customs territory of the Union;

(42)‘temporary storage declaration’ means the act whereby a person indicates, in the prescribed form and manner, that goods are in temporary storage;

(43)‘customs declaration’ means the act whereby a person indicates, in the prescribed form and manner, a wish to place goods under a given customs procedure, with an indication, where appropriate, of any specific arrangements to be applied;

(44)‘declarant’ means the person lodging a customs declaration, a temporary storage declaration, an entry summary declaration, an exit summary declaration, a re-export declaration or a re-export notification in that person’s own name or the person in whose name such a declaration or notification is lodged;

(45)‘re-export declaration’ means the act whereby a person indicates, in the prescribed form and manner, a wish to take non-Union goods, with the exception of those under the free zone procedure or in temporary storage, out of the customs territory of the Union;

(46)‘re-export notification’ means the act whereby a person indicates, in the prescribed form and manner, a wish to take non-Union goods which are under the free zone procedure or in temporary storage out of the customs territory of the Union;

(47)‘distance sales of goods imported from third countries’ means distance sales of goods imported from third countries or third territories as defined in Article 14(4), point (2), of Directive 2006/112/EC;

(48)‘manufacturer’ means:

(a)the manufacturer of the product pursuant to the other legislation applicable to that product; or  

(b)the producer with respect to agricultural products as defined in Article 38(1) TFEU or to raw materials; or  

(c)if there is no manufacturer or producer as referred to in points (a) and (b), the natural or legal person or association of persons who manufactured the product or had the product manufactured, and markets that product under that person’s name or trademark;

(49)‘product supplier’ means any natural or legal person or association of person in the supply chain who manufactures a product in whole or in part, whether as manufacturer or in any other circumstance; 

(50)‘temporary storage’ means the situation of non-Union goods temporarily stored under customs supervision in the period between the moment in which the carrier notifies their arrival to the customs territory and their placement under a customs procedure;

(51)‘processed products’ means goods placed under a processing procedure which have undergone processing operations;

(52)‘processing operations’ means any of the following:

(a)the working of goods, including erecting, assembling or fitting those goods to other goods;

(b)the processing of goods;

(c)the destruction of goods;

(d)the repair of goods, including restoring and putting those goods in order;

(e)the use of goods which are not to be found in the processed products, but which allow or facilitate the production of those products, even if they are entirely or partially used up in the process (production accessories);

(53)‘holder of the transit procedure’ means the person who lodges the transit declaration or provides the information required for placing goods under that procedure, or on whose behalf that declaration is lodged or that information provided.

(54)‘rate of yield’ means the quantity or percentage of processed products obtained from the processing of a given quantity of goods placed under a processing procedure;

(55)‘third country’ means a country or a territory outside the customs territory of the Union;

(56)‘simplified tariff treatment for distance sales’ means the simplified tariff treatment for distance sales set out in Article 1, paragraphs 4 and 5, and Part One, Section II, point G of Annex I to Regulation (EEC) No 2658/87;

(57)‘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;

(58)‘debtor’ means any person liable for a customs debt;

(59)‘import duty’ means customs duty payable on the import of goods;

(60)‘export duty’ means customs duty payable on the export of goods;

(61)‘repayment’ means the refunding of an amount of import or export duty that has been paid;

(62)‘remission’ means the waiving of the obligation to pay an amount of import or export duty which has not been paid;

(63)‘buying commission’ means a fee paid by an importer to an agent for representing him or her in the purchase of goods being valued;

(64)‘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.

Chapter 3
Decisions relating to the application of the customs legislation

Section 1
General principles

Article 6

Decisions taken upon application

1.Where a person applies for a decision relating to the application of the customs legislation, that person shall provide all the information required by the competent customs authorities in order to enable them to take that decision.

A decision may also be applied for by, and taken with regard to, several persons, in accordance with the conditions laid down in the customs legislation.

Except where otherwise provided, the competent customs authority shall be that of the place of establishment of the applicant.

2.Customs authorities shall, without delay and at the latest within 30 calendar days of receipt of the application for a decision, verify whether the conditions for the acceptance of that application are fulfilled.

Where the customs authorities establish that the application contains all the information required in order for them to be able to take the decision, they shall communicate its acceptance to the applicant within the period specified in the first subparagraph.

Where the customs authorities establish that the application does not contain all the information required, they shall ask the applicant to provide the relevant additional information within a reasonable time limit which shall not exceed 30 calendar days. Even where the customs authorities have requested additional information to the applicant, they shall decide whether the application is complete and can be accepted or whether it is incomplete and shall be refused in a period that shall not exceed 60 calendar days from the date of the first application. If the customs authorities do not expressly inform the applicant within that period whether the application has been accepted, the application shall be considered as accepted at the end of the 60 calendar days.

3.Except where otherwise provided, the competent customs authority shall take a decision as referred to in paragraph 1 at the latest within 120 calendar days of the date of acceptance of the application and shall notify the applicant without delay.

Where the customs authorities are unable to comply with the time-limit for taking a decision, they shall inform the applicant of that fact before the expiry of that time-limit, stating the reasons and indicating the further period of time which they consider necessary in order to take a decision. Except where otherwise provided, that further period of time shall not exceed 30 calendar days.

Without prejudice to the second subparagraph, the customs authorities may extend the time limit for taking a decision, as laid down in the customs legislation, where the applicant requests an extension to carry out adjustments in order to ensure the fulfilment of the conditions and criteria required for granting the decision. Those adjustments and the further period of time necessary to carry them out shall be communicated to the customs authorities, which shall decide on the extension.

Where the customs authorities fail to take a decision within the time-limits established in the first, second and third subparagraphs, the applicant may consider the request to have been denied and may appeal such a negative decision. The applicant may also inform the EU Customs Authority that the customs authorities did not take a decision within the relevant time limits.

4.Except where otherwise specified in the decision or in the customs legislation, the decision shall take effect from the date on which the applicant receives it, or is deemed to have received it. Except in the cases provided for in Article 17(2), decisions adopted shall be enforceable by the customs authorities from that date.

5.Except where otherwise provided in the customs legislation, the decision shall be valid without limitation of time.

6.Before taking a decision which would adversely affect the applicant, the customs authorities shall communicate the grounds on which they intend to base their decision to the applicant, who shall be given the opportunity to express his or her point of view within a period prescribed from the date on which he or she receives that communication or is deemed to have received it (‘right to be heard’). Following the expiry of that period, the applicant shall be notified, in the appropriate form, of the decision. 

The first subparagraph shall not apply in any of the following cases:

(a)where it concerns a decision relating to binding information referred to in Article 13(1);

(b)in the event of refusal of the benefit of a tariff quota where the specified tariff quota volume is reached, as referred to in Article 145(4), first subparagraph;

(c)where the nature or the level of a threat to the security and safety of the Union and its residents, to human, animal or plant health, to the environment or to consumers so requires;

(d)where the decision aims at securing the implementation of another decision on which the applicant has been given the opportunity to express his or her point of view, without prejudice to the law of the Member State concerned;

(e)where it would prejudice investigations initiated for the purpose of combating fraud;

(f)in other specific cases.

7.A decision which adversely affects the applicant shall set out the grounds on which it is based and shall refer to the right of appeal provided for in Article 16.

8.The Commission is empowered to adopt delegated acts in accordance with Article 261, to supplement this Regulation by determining:

(a)the exceptions for designating the competent customs office referred to in paragraph 1, third subparagraph, of this Article;

(b)the conditions for the acceptance of an application, referred to in paragraph 2 of this Article;

(c)the cases where the time limit to take a specific decision, including the possible extension of that time-limit, differs from the time limits referred to in paragraph 3 of this Article;

(d)the cases, referred to in paragraph 4 of this Article, where the decision takes effect from a date which is different from the date on which the applicant receives it or is deemed to have received it;

(e)the cases, referred to in paragraph 5 of this Article, where the decision is not valid without limitation of time;

(f)the duration of the period referred to in paragraph 6, first subparagraph, of this Article;

(g)the specific cases, referred to in paragraph 6, second subparagraph, point (f) of this Article.

9.The Commission shall specify, by means of implementing acts, the procedure for:

(a)the submission and the acceptance of the application for a decision, referred to in paragraphs 1 and 2;

(b)taking the decision referred to in this Article, including, where appropriate, as regards the right to be heard and the consultation of other Member States concerned.

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

Article 7

Management of decisions taken upon application

1.The holder of the decision shall comply with the obligations resulting from that decision.

2.The holder of the decision shall continuously monitor the fulfilment of the conditions and criteria, and compliance with the obligations, resulting from the decisions and, where applicable, establish internal controls capable of preventing, detecting and correcting illegal or irregular transactions.

3.The holder of the decision shall inform the customs authorities without delay of any factor arising after the decision was taken, which may influence the continuation or content of that decision.

4.Customs authorities shall regularly monitor whether the holder of the decision continues to fulfil the relevant criteria and comply with the relevant obligations, in particular the ability of the holder of the decision to prevent, react to and remedy errors through appropriate internal controls. Based on such monitoring activity, customs shall assess the risk profile of the holder of the decision, where relevant. Where the holder of the decision has been established in the customs territory of the Union for less than 3 years, the customs authorities shall closely monitor it during the first year after the decision is taken.

5.The customs authorities shall communicate to the EU Customs Authority the decisions taken upon application and all monitoring activities that they carry out in accordance with paragraph 4. The EU Customs Authority shall take this information into account for risk management purposes.

6.Until the date set out in Article 265(3), the customs authorities shall record their decisions in the existing electronic systems for the exchange of information developed by the Member States and the Commission. The Member States and the Commission shall have access to those decisions and underlying information in those systems.

7.Without prejudice to provisions laid down in other fields which specify the cases in which decisions are invalid or become null and void, the customs authorities which took a decision may at any time annul, revoke or amend it where it does not conform to the customs legislation. Customs authorities shall inform the EU Customs Authority about such annulment, revocation and amendment of customs decisions.

8.In specific cases the customs authorities shall carry out the following:

(a)re-assess a decision;

(b)suspend a decision which is not to be annulled, revoked or amended.

9.The customs authority competent to take the decision shall suspend the decision instead of annulling, revoking or amending it where:

(a)that customs authority considers that there may be sufficient grounds for annulling, revoking or amending the decision, but does not yet have all necessary elements to decide on the annulment, revocation or amendment;

(b)that customs authority considers that the conditions for the decision are not fulfilled or that the holder of the decision does not comply with the obligations imposed under that decision, and it is appropriate to allow the holder of the decision time to take measures to ensure the fulfilment of the conditions or the compliance with the obligations;

(c)the holder of the decision requests such suspension because that person is temporarily unable to fulfil the conditions laid down for the decision or to comply with the obligations imposed under that decision.

In cases referred to in paragraph 1, points (b) and (c), the holder of the decision shall notify the customs authority competent to take the decision of the measures that person will take to ensure the fulfilment of the conditions or compliance with the obligations, as well as the period of time he needs to take those measures.

10.The Commission is empowered to adopt delegated acts in accordance with Article 261, to supplement this Regulation by determining:

(a)detailed rules for monitoring a decision referred to in paragraphs 2 to 4 of this Article;

(b)the specific cases and the rules for re-assessing decisions as referred to in paragraph 8 of this Article.

Article 8

Union-wide validity of decisions

Except where the decision provides that its effect is limited to one or several Member States, decisions relating to the application of the customs legislation shall be valid throughout the customs territory of the Union.

Article 9

Annulment of favourable decisions

1.The customs authorities shall annul a decision favourable to the holder of the decision if all the following conditions are fulfilled:

(a)the decision was taken on the basis of incorrect or incomplete information;

(b)the holder of the decision knew or ought reasonably to have known that the information was incorrect or incomplete;

(c)if the information had been correct and complete, the decision would have been different.

2.The holder of the decision shall be notified of its annulment.

3.Annulment shall take effect from the date on which the initial decision took effect, unless otherwise specified in the decision in accordance with the customs legislation.

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

Article 10

Revocation and amendment of favourable decisions

1.A favourable decision shall be revoked or amended where, in cases other than those referred to in Article 9:

(a)one or more of the conditions for taking that decision were not or are no longer fulfilled; or

(b)upon application by the holder of the decision.

2.Except where otherwise provided, a favourable decision addressed to several persons may be revoked only in respect of a person who fails to comply with an obligation imposed under that decision.

3.The holder of the decision shall be notified of its revocation or amendment.

4.Article 6(4) shall apply to the revocation or amendment of the decision.

However, in exceptional cases where the legitimate interests of the holder of the decision so require, the customs authorities may defer the date on which revocation or amendment takes effect by up to one year. That date shall be indicated in the revoking or amending decision.

5.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining:

(a)the cases, referred to in paragraph 2, where a favourable decision addressed to several persons may be revoked also in respect of persons other than the person who fails to comply with an obligation imposed under that decision

(b)the exceptional cases, in which the customs authorities may defer the date on which revocation or amendment takes effect in accordance with the second subparagraph of paragraph 4.

6.The Commission shall specify, by means of implementing acts, the procedural rules for revoking or amending favourable decisions. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 11

Decisions taken without prior application

Except when a customs authority acts as a judicial authority, Article 6(4), (5), (6),  (7), Article 7(7) and Articles 8, 9 and 10 shall also apply to decisions taken by the customs authorities without prior application by the person concerned.

Article 12

Limitations applicable to decisions on goods placed under a customs procedure or in temporary storage

Except where the person concerned so requests, the revocation, amendment or suspension of a favourable decision shall not affect goods which, at the moment where the revocation, amendment or suspension takes effect, have already been placed and are still under a customs procedure or in temporary storage by virtue of the revoked, amended or suspended decision.

Section 2
Binding information

Article 13

Decisions relating to binding information

1.The customs authorities shall, upon application, take decisions relating to binding tariff information (‘BTI decisions’), decisions relating to binding origin information (‘BOI decisions’) and decisions relating to binding valuation information (‘BVI decisions’).

Such an application shall not be accepted in any of the following cases:

(a)where the application is made, or has already been made, at the same or another customs office, by or on behalf of the holder of a decision:

(i)for BTI decisions, in respect of the same goods;

(ii)for BOI decisions, in respect of the same goods and under the same circumstances determining the acquisition of origin;

(iii)for BVI decisions, in respect of goods under the same circumstances determining the customs value;

(b)where the application does not relate to any intended use of decision relating to binding information or any intended use of a customs procedure.

2.Decisions relating to binding information shall be binding, only in respect of the tariff classification or determination of the origin or the customs value of goods, on:

(a)the customs authorities, as against the holder of the decision, only in respect of goods for which customs formalities are completed after the date on which the decision takes effect;

(b)the holder of the decision, as against the customs authorities, only with effect from the date on which he or she receives, or is deemed to have received, notification of the decision.

3.Decisions relating to binding information shall be valid for a period of 3 years from the date on which the decision takes effect.

4.For the application of a decision relating to binding information in the context of a particular customs procedure, the holder of the decision shall be able to prove that:

(a)in the case of a BTI decision, the goods in question correspond in every respect to those described in the decision;

(b)in the case of a BOI decision, the goods in question and the circumstances determining the acquisition of origin correspond in every respect to the goods and the circumstances described in the decision;

(c)in the case of a BVI decision, the circumstances determining the customs value for the goods in question correspond in every respect to the circumstances described in the decision.

Article 14

Management of decisions relating to binding information

1.A BTI decision shall cease to be valid before the end of the period referred to in Article 13(3) where it no longer conforms to the law, as a result of either of the following:

(a)the adoption of an amendment to the nomenclatures referred to in Article 145(2), points (a) and (b);

(b)the adoption of measures referred to in Article 146(4);

In such cases, the BTI decision shall cease to be valid with effect from the date of application of such amendment or measures.

2.A BOI decision shall cease to be valid before the end of the period referred to in Article 13(3) in any of the following cases:

(a)where a legally binding act of the Union is adopted or an agreement is concluded by, and becomes applicable in, the Union, and the BOI decision no longer conforms to the law thereby laid down, with effect from the date of application of that act or agreement;

(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.

3.A BVI decision shall cease to be valid before the end of the period referred to in Article 13(3) in the following cases:

(a)    where the adoption of a legally binding act of the Union renders the BVI decision non-compliant with that act, from the date of application of that act;

(b)where the BVI decision is no longer compatible with the Article VII of the General Agreement on Tariffs and Trade, or the 1994 Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on Customs Valuation), or with the decisions adopted for the interpretation of that Agreement by the Committee on Customs Valuation, with effect from the date of publication in the Official Journal of the European Union.

4.Decisions relating to binding information shall not cease to be valid with retroactive effect.

5.By way of derogation from Article 7(7) and Article 9, the customs authorities shall annul decisions relating to binding information only where they are based on inaccurate or incomplete information from the applicants.

6.The customs authorities shall revoke decisions relating to binding information in accordance with Article 7(7) and Article 10. However, such decisions shall not be revoked upon application by the holder of the decision.

7.Decisions relating to binding information may not be amended.

8.The customs authorities shall revoke BTI decisions where they are no longer compatible with the interpretation of any of the nomenclatures referred to in Article 145(2), points (a) and (b) resulting from any of the following:

(a)explanatory notes referred to in Article 9(1), point (a), second indent of Regulation (EEC) No 2658/87, with effect from the date of their publication in the Official Journal of the European Union;

(b)a judgment of the Court of Justice of the European Union, with effect from the date of publication of the operative part of the judgment in the Official Journal of the European Union;

(c)classification decisions, classification opinions or amendments of the explanatory notes to the Nomenclature of the Harmonised Commodity Description and Coding System, adopted by the Organization set-up by the Convention establishing a Customs Co-operation Council, done at Brussels on 15 December 1950, with effect from the date of publication of the Commission Communication in the ‘C’ series of the Official Journal of the European Union.

9.BOI and BVI decisions shall be revoked where they are no longer compatible with a judgment of the Court of Justice of the European Union, with effect from the date of publication of the operative part of the judgment in the Official Journal of the European Union.

10.Where a decision relating to binding information ceases to be valid in accordance with paragraph 1, point (b), or with paragraphs 2 or 3, or is revoked in accordance with paragraphs 6, 8 or 9, the decision may still be used in respect of binding contracts which were based upon that decision and were concluded before it ceased to be valid or was revoked. That extended use shall not apply where a BOI decision is taken for goods to be exported.

The extended use referred to in the first subparagraph shall not exceed 6 months from the date on which the decision relating to binding information ceases to be valid or is revoked. However, a measure referred to in Article 146(4), a measure referred to in Article 151 or a measure referred to in Article 158 may exclude that extended use or lay down a shorter period of time. In the case of products for which an import or export certificate is submitted when customs formalities are carried out, the period of 6 months shall be replaced by the period of validity of the certificate.

In order to benefit from the extended use of a decision relating to binding information, the holder of that decision shall lodge an application to the customs authority that took the decision within 30 days of the date on which it ceases to be valid or is revoked, indicating the quantities for which a period of extended use is requested and the Member State or Member States in which goods will be cleared under the period of extended use. That customs authority shall take a decision on the extended use and notify the holder, without delay, and at the latest within 30 days of the date on which it receives all the information required in order to enable it to take that decision.

11.The Commission shall notify the customs authorities where: 

(a)the taking of decisions relating to binding information, for goods whose correct and uniform tariff classification or determination of origin or determination of the customs value is not ensured, is suspended; or

(b)the suspension referred to in point (a) is withdrawn.

12.The Commission may adopt decisions requesting Member States to revoke a BTI, BOI or BVI decision to ensure a correct and uniform tariff classification or determination of the origin of goods, or determination of the customs value. Before adopting such a decision, the Commission shall communicate the grounds on which it intends to base its decision to the holder of the BTI, BOI or BVI decision, who shall be given the opportunity to express that person’s point of view within a period prescribed from the date on which that person receives that communication or is deemed to have received it.

13.The Commission is empowered to adopt delegated acts, in accordance Article 261, to supplement this Regulation by determining the rules for taking the decisions referred to in paragraph 12 of this Article, in particular as regards the communication to the persons concerned of the grounds on which the Commission intends to base its decision and the time-limit within which those persons may express their point of view.

14.The Commission shall adopt, by means of implementing acts, the procedural rules for:

(a)using a decision relating to binding information after it ceases to be valid or is revoked, in accordance with paragraph 10;

(b)the Commission to notify the customs authorities in accordance with paragraph 11, points (a) and (b).

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

15.The Commission shall adopt, by means of implementing acts the decisions requesting Member States to revoke the decisions referred to in paragraph 12. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 262(2).

Section 3
Appeals

Article 15

Decisions taken by a judicial authority

Articles 16 and 17 shall not apply to appeals lodged with a view to the annulment, revocation or amendment of a decision relating to the application of the customs legislation taken by a judicial authority, or by customs authorities acting as judicial authorities.

Article 16

Right of appeal

1.Any person shall have the right to appeal against any decision taken by the customs authorities relating to the application of the customs legislation which concerns him or her directly and individually.

Any person who has applied to the customs authorities for a decision and has not obtained a decision on that application within the time-limits referred to in Article 6(3) shall also be entitled to exercise the right of appeal.

2.The right of appeal may be exercised in at least two steps:

(a)initially, before the customs authorities or a judicial authority or other body designated for that purpose by the Member States;

(b)subsequently, before a higher independent body, which may be a judicial authority or an equivalent specialised body, according to the provisions in force in the Member States.

3.The appeal shall be lodged in the Member State where the decision was taken or was applied for.

4.Member States shall ensure that the appeals procedure enables the prompt confirmation or correction of decisions taken by the customs authorities.

Article 17

Suspension of implementation

1.The submission of an appeal shall not cause implementation of the disputed decision to be suspended.

2.The customs authorities shall, however, suspend implementation of such a decision in whole or in part where they have good reason to believe that the disputed decision is inconsistent with the customs legislation or that irreparable damage is to be feared for the person concerned.

3.In the cases referred to in paragraph 2, where the disputed decision has the effect of causing import or export duty to be payable, suspension of implementation of that decision shall be conditional upon the provision of a guarantee, unless it is established, on the basis of a documented assessment, that such a guarantee would be likely to cause the debtor serious economic difficulties.

Section 4
Charges and costs

Article 18

Prohibition of charges and costs

1.Customs authorities shall not impose charges for the performance of customs controls or any other application of the customs legislation during the official opening hours of their competent customs offices.

2.Customs authorities may impose charges or recover costs where specific services are rendered, in particular the following:

(a)attendance, where requested, by customs staff outside official office hours or at premises other than customs premises;

(b)analyses or expert reports on goods and postal fees for the return of goods to an applicant, particularly in respect of decisions taken pursuant to Article 13 or the provision of information in accordance with Article 39;

(c)the examination or sampling of goods for verification purposes, or the destruction of goods, where costs other than the cost of using customs staff are involved;

(d)exceptional control measures, where these are necessary due to the nature of the goods or to a potential risk.

Title II
OBLIGATIONS AND RIGHTS OF PERSONS WITH REGARD TO CUSTOMS LEGISLATION

Chapter 1
Registration

Article 19

Registration

1.Economic operators established in the customs territory of the Union shall register with the customs authorities responsible for the place where they are established in order to obtain an Economic Operator Registration and Identification (EORI) number. Where possible, that registration shall also include the electronic identification of the operator in the national electronic identification schemes referred to in Regulation (EU) No 910/2014.

2.Registered economic operators shall inform the customs authorities about any modification in their registration data, in particular where this entails a modification of their place of establishment.

3.In specific cases, economic operators which are not established in the customs territory of the Union shall register with the customs authorities responsible for the place where they first lodge a declaration or apply for a decision.

4.Persons other than economic operators shall not be required to register with the customs authorities unless otherwise provided.

Where persons referred to in the first subparagraph are required to register, the following shall apply:

(a)where they are established in the customs territory of the Union, they shall register with the customs authorities responsible for the place where they are established;

(b)where they are not established in the customs territory of the Union, they shall register with the customs authorities responsible for the place where they first lodge a declaration or apply for a decision.

5.In specific cases, the customs authorities shall invalidate the registration. 

6.The Commission is empowered to adopt delegated acts in accordance with Article 261, to supplement this Regulation by determining:

(a)the minimum data requirements for the registration referred to in paragraph 1;

(b)the specific cases referred to in paragraph 3;

(c)the cases referred to in the first subparagraph of paragraph 4, where persons other than economic operators are required to register with the customs authorities;

(d)the specific cases referred to in paragraph 5 where the customs authorities invalidate a registration;

(e)the customs authority responsible for the registration.

7.The Commission shall specify, by means of implementing acts, the customs authority responsible for the registration referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 262(2).

Chapter 2
Importer and deemed importer

Article 20

Importers

1.The importer shall comply with the following obligations:

(a)providing, keeping and making available to customs authorities, as soon as it is available and in any event prior to the release of the goods, all the information required in respect of the storage or the customs procedure under which the goods are to be placed in accordance with Articles 88, 118, 132 and 135, or to discharge the outward processing procedure;

(b)ensuring the correct calculation and payment of customs duties and any other charges applicable;

(c)ensuring that the goods entering or exiting the customs territory of the Union comply with the relevant other legislation applied by the customs authorities and providing, keeping and making available appropriate records of such compliance;

(d)any other obligation on the importer established in customs legislation.

2.The importer shall be established in the customs territory of the Union.

3.By way of derogation from paragraph 2 the following importers or persons shall not be required to be established in the customs territory of the Union:

(a)an importer who places goods in transit or temporary admission;

(b)an importer bringing goods that remain in temporary storage;

(c)persons, who occasionally place goods under customs procedures, provided that the customs authorities consider such placing to be justified;

(d)persons who are established in a country the territory of which is adjacent to the customs territory of the Union, and who present the goods at a Union border customs office adjacent to that country, provided that the country in which the persons are established grants reciprocal benefits to persons established in the customs territory of the Union;

(e)a deemed importer who is represented by an indirect representative established in the customs territory of the Union. 

Article 21

Deemed importers

1.By way of derogation from Article 20(1), point (a), deemed importers shall provide or make available the information on distance sales of goods to be imported in the customs territory of the Union at the latest on the day following the date when the payment was accepted and in any event prior to the release of the goods.

2.Without prejudice to the information required to release the goods for free circulation in accordance with Article 88(3), point (a), the information referred to in paragraph 1 of this Article shall contain at least the requirements set out in Article 63c(2) of Implementing Regulation (EU) No 282/2011.

3.Where goods previously imported by a deemed importer under distance sales are returned to the original consignor’s address or to another address outside the customs territory of the Union, the deemed importer shall invalidate the information on release for free circulation of those goods and provide or make available the proof of exit of the goods out of the customs territory of the Union.

Chapter 3
Exporter

Article 22

Exporters

1.The exporter shall comply with the following obligations:

(a)providing, keeping and making available to customs authorities, as soon as it is available and in any event prior to the release of the goods, all the information required in respect of the customs procedure under which the goods are placed in accordance with Article 99 and Article 140 or to discharge the temporary admission procedure;

(b)ensuring the correct calculation and collection of customs duties and any other charges, if applicable;

(c)ensuring that the goods entering or exiting the customs territory of the Union comply with the relevant other legislation applied by the customs authorities and providing, keeping and making available appropriate records of such compliance;

(d)any other obligation established in customs legislation.

2.The exporter shall be established in the customs territory of the Union.

3.By way of derogation from paragraph 2, the following exporters shall not be required to be established in the customs territory of the Union:

(a)an exporter who places goods in transit, discharges the temporary admission procedure or exports goods that were in temporary storage;

(b)persons, who occasionally place goods under customs procedures, provided that the customs authorities consider this to be justified;

(c)persons who are established in a country the territory of which is adjacent to the customs territory of the Union, and who present the goods at a Union border customs office adjacent to that country, provided that the country in which the persons are established grants reciprocal benefits to persons established in the customs territory of the Union. 

Chapter 4
Authorised economic operator and Trust and Check traders

Article 23

Application and authorisation for authorised economic operator

1.A person who is resident, incorporated or registered in the customs territory of the Union and who meets the criteria set out in Article 24 may apply for the status of authorised economic operator.

The customs authorities shall, following consultation with other authorities, if necessary, grant one or both of the following types of authorisations:

(a)that of an authorised economic operator for customs simplifications, which shall enable the holder to benefit from the simplifications in accordance with the customs legislation; or

(b)that of an authorised economic operator for security and safety that shall entitle the holder to facilitations relating to security and safety.

2.Both types of authorisations referred to in paragraph 1, second subparagraph, may be held at the same time.

3.The persons referred to in paragraph 1 shall comply with the obligations set out in Article 7(2) and (3). The customs authorities shall monitor the operator’s continuous compliance with the criteria and conditions for the status of authorised economic operator in accordance with Article 7(4).

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

4.The status of authorised economic operator shall, subject to paragraph 5 of this Article and to Article 24, be recognised by the customs authorities in all Member States.

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

6.The authorised economic operator referred to in paragraph 1 shall enjoy more facilitations than other economic operators in respect of customs controls according to the type of authorisation granted, including fewer physical and document-based controls. The status of authorised economic operator shall be taken into account favourably for customs risk management purposes.

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 Union legislation in the area of the common commercial policy.

8.A joint business continuity mechanism to respond to disruptions in trade flows due to increases in security alert levels, border closures and/or natural disasters, hazardous emergencies or other major incidents shall be established providing that the customs authorities may facilitate and expedite to the extent possible priority cargos related to authorised economic operators.

9.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining:

(a)the type and frequency of the monitoring activities by both the persons referred to in paragraph 1 and the customs authorities referred to in paragraph 3;

(b)the simplifications for authorised economic operators referred to in paragraph 5;

(c)the facilitations referred to in paragraph 6.

10.The Commission shall specify, by means of implementing acts, the procedural rules for the consultations in respect of the determination of the status of authorised economic operators referred to in paragraph 1, second subparagraph, including the deadlines for replying. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 24

Granting of the status of authorised economic operator

1.The criteria for the granting of the status of authorised economic operator shall be the following:

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

(b)the demonstration by the applicant of a high level of control of his or her operations and of the flow of goods, by means of a system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls and evidence that non-compliance has been effectively remedied; the applicant ensures that relevant employees are instructed to inform the customs authorities whenever compliance difficulties are discovered and establishes procedures for informing the customs authorities of such difficulties;

(c)financial solvency, which shall be deemed to be proven where the applicant has good financial standing, which enables him or her to fulfil his or her commitments, with due regard to the characteristics of the type of business activity concerned;

(d)with regard to the authorisation referred to in Article 23(1), point (a), practical standards of competence or professional qualifications directly related to the activity carried out;

(e)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.

2.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).

Article 25

Granting the status of Trust and Check trader

1.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.

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

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

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

(b)the demonstration by the applicant of a high level of control of his or her operations and of the flow of goods, by means of a system of managing commercial and transport records, which allows appropriate customs controls and evidence that non-compliance has been effectively remedied; the applicant shall ensure that relevant employees inform the customs authorities whenever compliance difficulties are discovered and establishes procedures for informing the customs authorities of such difficulties;

(c)financial solvency, which shall be deemed to be proven where the applicant has good financial standing, which enables him or her to fulfil his or her commitments, with due regard to the characteristics of the type of business activity concerned. In particular, during the last 3 years preceding the submission of the application, the applicant shall have fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection with the import or export of goods, including on VAT and excise duties due in relation to intra-Union operations;

(d)practical standards of competence or professional qualifications directly related to the type and size of activity carried out, including that relevant employees are instructed on how to interact with customs authorities through the EU Customs Data Hub;

(e)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;

(f)having an electronic system providing or making available to the customs authorities real-time all data on the movement of the goods and the compliance of the person referred to in paragraph 1 with all requirements applicable on those goods, including relating to safety and security and including where relevant sharing in the EU Customs Data Hub:

(i)customs records;

(ii)accounting system;

(iii)commercial and transport records;

(iv)their tracking and logistics systems, which identifies goods as Union or non-Union goods and indicates, where appropriate, their location;

(v)licences and authorisations granted in accordance with other legislation applied by the customs authorities;

(vi)complete records needed to check the correctness of the establishment of the customs debts.

4.The persons referred to in paragraph 1 shall comply with the obligations set out in Article 7(2) and (3). The customs authorities shall monitor the operator’s continuous compliance with the criteria and conditions for the status of authorised economic operator in accordance with Article 7(4).

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.

5.Where a Trust and Check trader changes its Member State of establishment, the customs authorities of the receiving Member State may reassess the Trust and Check authorisation, after consultation with the Member State that initially granted the status and having received the previous records on the operators. During the reassessment, the customs authority of the Member State that granted the initial authorisation may suspend it.

The Trust and Check trader shall inform the customs authorities of the receiving Member State of any changes in its corporate structure, ownership, solvency situation, trading models or any other significant changes in its situation and activities if any of these changes have an impact on the Trust and Check status.

6.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 the customs authorities have suspended, annulled or revoked a Trust and Check trader authorisation in accordance with Articles 7, 9 and 10 they shall take the measures necessary to ensure that the authorisations referred to in paragraph 7 of this Article and the facilitations referred to in paragraph 8 of this Article are also suspended, annulled or revoked.

7.Customs authorities may authorise Trust and Check traders:

(a)to provide part of the data on his or her goods after the release of those goods, in accordance with Article 59(3);

(b)to perform certain controls and to release the goods upon receipt of those goods at the place of business of the importer, owner or consignee and/or upon delivery from the place of business of the exporter, owner or consignor, in accordance with Article 61;

(c)to consider that it provides the necessary assurance of the proper conduct of the operations for the purposes of obtaining authorisations for special procedures in accordance with Articles 102, 103, 109 and 123;

(d)to periodically determine the customs debt corresponding to the total amount of import or export duty relating to all the goods released by that trader, in accordance with Article 181(4);

(e)to defer the payment of the customs debt in accordance with Article 188.

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.

9.By way of derogation from Article 110, where the importer or the exporter of the goods entering or exiting the customs territory has the status of Trust and Check trader, the goods shall be considered under a duty suspensive regime and remain under customs supervision until their final destination without the obligation to place them in transit. The Trust and Check trader shall be liable for the payment of customs duties, other taxes and other charges in the Member State of establishment and where the authorisation was granted.

10.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining the type and frequency of the monitoring activities referred to in paragraph 4 of this Article.

11.The Commission shall adopt, by means of implementing acts:

(a)the rules to consult other authorities for the determination of the status of Trust and Check trader referred to in paragraph 2;

(b)the modalities for the application of the criteria referred to in paragraph 3;

(c)the rules to consult the customs authorities as referred to in paragraph 5. 

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

Article 26

Transitional provisions for authorised economic operators for customs simplifications

1.Until the date established in Article 265(4), the customs authorities may grant persons meeting the criteria the status of authorised economic operator for customs simplifications and authorise them to benefit from certain simplifications and facilitations in accordance with the customs legislation.

2.By the date established in Article 265(3), the customs authorities shall assess the valid authorised economic operators’ authorisations for customs simplifications to check whether their holders may be granted the status of Trust and Check traders. If they may not, the status of authorised economic operators for customs simplifications and the simplifications referred to in Article 23(5) shall be revoked.

3.Until the authorisation is reassessed or until the date established in Article 265(3), whichever is the earlier, the recognition of status of authorized economic operator for customs simplifications shall remain valid, unless Articles 9 and 10 on annulment, revocation or amendment of decisions apply.

Chapter 5
Custom representation

Article 27

Customs representatives

1.Any person may appoint a customs representative.

Such representation may be either direct, in which case the customs representative shall act in the name of and on behalf of another person, or indirect, in which case the customs representative shall act in his or her own name but on behalf of another person.

An indirect customs representative acting in its own name but on behalf of an importer or an exporter shall be considered the importer or the exporter for the purposes of Articles 20 and 22, respectively.

2.A customs representative shall be established in the customs territory of the Union.

Except where otherwise provided, that requirement shall be waived where the customs representative acts on behalf of persons who are not required to be established within the customs territory of the Union.

3.A customs representative having the status of Trust and Check trader shall only be recognised as such when acting as indirect representative. When acting as a direct representative, the customs representative may be recognised as Trust and Check trader if the person in whose name and on whose behalf that representative is acting has been granted such status.

4.The Commission shall determine, in accordance with Union law, the conditions under which a customs representative may provide services in the customs territory of the Union.

5.Member States shall apply the conditions determined in accordance with paragraph 4 to customs representatives not established within the customs territory of the Union.

6.The Commission is empowered to adopt delegated acts, in accordance with Article 261 to supplement this Regulation by determining:

(a)the cases in which the waiver referred to in paragraph 2, second subparagraph, does not apply;

(b)the conditions under which a customs representative may provide services in the customs territory of the Union referred to in paragraph 4.

Article 28

Representatives’ empowerment

1.When dealing with the customs authorities, a customs representative shall state that he or she is acting on behalf of the person represented and shall specify whether the representation is direct or indirect.

Persons who fail to state that they are acting as a customs representative or who state that they are acting as a customs representative without being empowered to do so shall be deemed to be acting in their own name and on their own behalf.

2.The customs authorities may require persons stating that they are acting as a customs representative to provide evidence of their empowerment by the person represented.

In specific cases, the customs authorities shall not require such evidence to be provided.

3.The customs authorities shall not require a person acting as a customs representative, carrying out acts and formalities on a regular basis, to produce on every occasion evidence of empowerment, provided that such person is in a position to produce such evidence on request by the customs authorities.

4.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining the cases in which the evidence of empowerment is not required by the customs authorities referred to in paragraph 2 of this Article.

5.The Commissions shall adopt, by means of implementing acts, the rules on the conferral and proving of the entitlement referred to in paragraph 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to Article 262(4).

Title III
EU CUSTOMS DATA HUB

Article 29

Functionalities and purpose of the EU Customs Data Hub

1.The EU Customs Data Hub shall provide a secure and cyber resilient set of electronic services and systems to use data including personal data for customs purposes. It shall provide the following functionalities:

(a)allow for the electronic implementation of customs legislation; 

(b)ensure the quality, integrity, traceability and non-repudiation of data processed therein, including the amendment of such data;

(c)ensure compliance with the provisions of Regulation (EU) 2016/679, Regulation (EU) 2018/1725 of the European Parliament and of the Council 63  and Directive (EU) 2016/680 of the European Parliament and of the Council 64 relating to the processing of personal data;

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

(e)enable the interoperability of those services and systems with other electronic systems, platforms or environments for the purpose of cooperation in accordance with Title XIII; 

(f)integrate the European Union Single Window Certificates Exchange System established by Article 4 of Regulation (EU) 2022/2399;

(g)enable the exchange of information with third countries;

(h)enable the customs surveillance of goods.

2.The acts that the persons, the Commission, the customs authorities, the EU Customs Authority or other authorities perform through the functionalities listed in paragraph 1 shall remain acts of those persons, of the Commission, of the customs authorities, the EU Customs Authority, or of other authorities, even if they have been automated.

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

4.The Commission is empowered to adopt delegated acts in accordance with Article 261 to amend the functionalities referred to in paragraph 1 to take account of new tasks conferred on the authorities referred to in Article 31 of this Regulation by Union legislation or to adapt those functionalities to the evolving needs of those authorities in implementing the customs legislation or other legislation applied by customs authorities.

5.The Commission shall lay down, by means of implementing acts:

(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;

(b)a work programme for the progressive phase out of those systems.

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

Article 30

National applications to use data from the EU Customs Data Hub

1.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.

2.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.

3.Where the EU Customs Authority develops an application in accordance with paragraph 2, it shall make it available to all Member States. 

Article 31

Purposes of the processing of personal data and other data in the EU Customs Data Hub

1.Persons may have access to the data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, that was transmitted by or on behalf of that person, or that has been addressed to or intended for that person. Such access shall take place exclusively to:    

(a)fulfil that person’s reporting obligations under customs legislation or other legislation applied by customs authorities, including determining the liability of any person for duty, fees and taxes that may be due in the Union; and

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

2.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)to carry out its tasks in relation to the implementation of customs legislation or other legislation applied by the customs authorities, including determining the liability of any person for duty, fees and taxes that may be due in the Union and verifying compliance with that legislation;

(b)to carry out its tasks in relation to controls and risk management as provided for in Title IV;

(c)to carry out the tasks necessary for the cooperation under the conditions provided for in Title XIII.

To ensure the effectiveness of customs controls, all customs authorities may receive and process the data resulting from a customs control where non-compliant goods have been detected.

3.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:

(a)to carry out its tasks on customs risk management as provided for in Title IV, Chapter 3;

(b)to carry out its tasks as provided for in Title XII, Chapter 2;

(c)to carry out the tasks relevant for the cooperation as provided for in Title XIII.

4.The Commission 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)to carry out its tasks in relation to risk management as provided for in Title IV, Chapter 3;

(b)to carry out its tasks in relation to the tariff classification of goods, their origin and value and their customs surveillance in accordance with Titles I and IX;

(c)to carry out its tasks in relation to restrictive measures and crisis management in accordance with Title XI;

(d)to carry out its tasks in relation to the EU Customs Authority in accordance with Title XII;

(e)to carry out the tasks necessary for the cooperation under the conditions provided for in Title XIII;

(f)to assess and evaluate the performance of the customs union in accordance with Title XV, Chapter 1;

(g)to monitor the implementation and ensure the uniform application of customs legislation or other legislation applied by the customs authorities, including determining the liability of any person for duty, fees and taxes that may be due in the Union;

(h)to produce statistics and other analyses as provided for in Union legislation for which the data in the EU Customs Data Hub is necessary.

5.The European Anti-Fraud Office (‘OLAF’) may process data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary for carrying out its activities concerning customs matters pursuant to Article 1 of Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council, and Council Regulation (EC) No 515/97, under the conditions relating to data protection laid down in the aforementioned Regulations. 

6.The European Public Prosecutor’s Office (‘EPPO’) may, upon request, access data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary for carrying out its tasks pursuant to Article 4 of Council Regulation (EU) 2017/1939 66 , insofar as the conduct investigated by EPPO concerns customs and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

7.The tax authorities of the Member States 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 to determine the liability of any person for duty, fees and taxes that may be due in the Union in connection with the relevant goods 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 Council 67 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.

9.The market surveillance authorities designated by Member States in accordance with Article 10 of Regulation (EU) 2019/1020 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 enforcing Union legislation governing the placing on the market or the safety of products and for cooperating with customs authorities to minimise the risks that non-compliant goods enter the Union, and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

10.The European Union Agency for Law Enforcement Cooperation (Europol) may, upon request, access data, including personal and commercially sensitive data, stored or otherwise available in the EU Customs Data Hub, exclusively and to the extent necessary to perform its tasks in accordance with Article 4 of Regulation (EU) 2016/794 of the European Parliament and of the Council as long as those tasks concern customs-related matters and under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article.

11.Other national authorities and Union bodies, including the European Border and Coast Guard Agency (Frontex), may process non-personal data stored or otherwise available in the EU Customs Data Hub under the conditions determined in an implementing act adopted pursuant to paragraph 14 of this Article:

(a)carry out their tasks relevant for the fulfilment of customs formalities;

(b)carry out the tasks entrusted to those authorities by Union legislation;

(c)carry out their tasks relevant for the performance of the Union-level risk management activities referred to in Article 52.    

12.Until the date set out in Article 265(3), the Commission, OLAF and the EU Customs Authority once it is established shall, exclusively for the purposes stated in paragraphs 4, 5 and 6, be able to process data, including personal data, from the existing electronic systems for the exchange of information developed by the Commission pursuant to Regulation (EU) No 952/2013.

13.The Commission is empowered to adopt delegated acts in accordance with Article 261 to amend paragraphs 2 to 4 to clarify and complement the purposes laid down therein in light of the evolving needs in implementing customs legislation or other legislation.

14.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. In determining those rules and modalities, the Commission shall, for each authority or category of authorities:

(a)assess the existing safeguards applied by the authority concerned to ensure that the data is processed in accordance to the purpose;

(b)ensure the proportionality and the necessity of the processing in relation to the purpose;

(c)determine the specific categories of data, which the authority may have access to or process;

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

(e)assess the need to restrict the subsequent sharing of the data;

(f)determine the conditions and modalities for requests for access to data, including personal or commercially sensitive data and which of the joint controllers will grant the access to the EU Customs Data Hub.

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

Article 32

Personal data in the EU Customs Data Hub

1.The personal data of the following categories of data subjects may be processed in the EU Customs Data Hub exclusively and to the extent necessary for the purposes laid down in Article 31:

(a)data subjects registered or applying for registration as economic operators in accordance with Article 19;

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

(c)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;

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

(e)authorised staff of customs authorities, of authorities other than customs or any other relevant authority or authorised body, whose personal information is necessary to ensure appropriate control and supervision of the access to the information in the EU Customs Data Hub;

(f)staff or authorised third parties working on behalf of the Commission, the EU Customs Authority or other Union bodies authorised to access the EU Customs Data Hub.

2.The following categories of personal data may be processed in the EU Customs Data Hub in accordance with Article 31:

(a)personal data in the EU Customs Data model referred to in Article 36;

(b)personal data included in the data collected for risk management purposes pursuant to Article 50(3), point (a);

(c)personal data required to ensure a proper identification of the staff authorised to process data in the EU Customs Data Hub referred to in paragraph 1, points (e) and (f);

3.The Commission is empowered to adopt delegated acts in accordance with Article 261 to amend or supplement the categories of data subjects and the categories of personal data referred to in paragraphs 1 and 2 of this Article to take account of developments in information technology and in the light of the state of progress in the information society.

Article 33

Retention period of personal data in the EU Customs Data Hub

1.Personal data in the EU Customs Data Hub may be stored by means of a specific service for a maximum period of 10 years, starting from the date on which that data is recorded in the service. The cases provided for in Article 48 and investigations launched by OLAF, EPPO or by Member States’ authorities, infringement procedures launched by the Commission and administrative and judicial proceedings involving personal data shall have a suspensive effect on the retention period with regard to that data.

2.After the period of time provided for in paragraph 1, personal data shall be erased or anonymised, according to the circumstances.

3.The Commission shall lay down, by means of implementing acts, the rules for anonymising the personal data after the expiry of the retention period.

Article 34

Roles and responsibilities for personal data processed in the EU Customs Data Hub

1.The customs authorities of the Member States, the Commission and the EU Customs Authority shall be considered joint controllers for the personal data processing in the EU Customs Data Hub for the purposes of risk management and cooperation, as referred to in Article 31(2), points (b) and (c), Article 31(3), points (a) and (c), and Article 31(4), points (a) and (e).

2.Each customs authority alone shall be considered controller in relation to the personal data it processes for the purposes referred to in Article 31(2),point (a).

3.The Commission shall be considered sole controller in relation to the personal data it processes for the purposes referred to in Article 31(4), points (c), (d) and (f) to (g).

4.Until the date set out in Article 265(3), the Commission, OLAF, EPPO and the EU Customs Authority shall be considered sole controllers in relation to the data processing referred to in Article 31(12).

5.The joint controllers referred to in paragraph 1 shall:

(a)work together to process the request(s) made by the data subject(s) in a timely manner and to facilitate the exercise of the rights of data subjects;

(b)assist each other in matters involving the identification and handling of any data breach related to the joint processing;

(c)exchange the relevant information necessary to inform data subjects pursuant to Chapter III, Section 2 of Regulation (EU) 2016/679, Chapter III, Section 2 of Regulation (EU) 2018/1725, and Chapter III of Directive (EU) 2016/680, where applicable;

(d)ensure and protect the security, integrity, availability and confidentiality of the personal data processed jointly pursuant to Article 32 of Regulation (EU) 2016/679, Article 33 of Regulation (EU) 2018/1725, and Article 25 of Directive (EU) 2016/680, where applicable.

6.The Commission shall lay down, by means of implementing acts, the respective roles and relationships of the joint controllers vis-à-vis the data subjects, in compliance with Article 26 of Regulation (EU) 2016/679 and Article 28 of Regulation (EU) 2018/1725. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 35

Restriction of data subject’s rights

1.Where the exercise by a data subject of the right of access and right to restriction of processing referred to in Articles 15 and 18 of Regulation (EU) 2016/679 and Articles 17 and 20 of Regulation (EU) 2018/1725, or the communication of a data breach referred to in Article 34(1) of Regulation (EU) 2016/679 and Article 35(1) of Regulation (EU) 2018/1725, would jeopardise an ongoing investigation concerning a natural person in the field of customs, the performance of customs controls or the management of a specific risk identified in relation to a natural person in the field of customs, the customs authorities, the EU Customs Authority and the Commission may, in accordance with Article 23(1), points (c), (e), (f) and (h), of Regulation (EU) 2016/679, and  the Commission and the EU Customs Authority may, in accordance with Article 25(1), points (a), (c), (e), and (g), of Regulation (EU) 2018/1725, restrict wholly or partly those rights as long as the restriction is necessary and proportionate.

2.The customs authorities, the Commission and the EU Customs Authority shall assess the necessity and proportionality of the restrictions referred to in paragraph 1 on a case-by-case basis before they are applied, considering the potential risks to the rights and freedoms of the data subject.

3.When processing personal data received from other organisations in the context of its tasks, the customs authorities, the EU Customs Authority or the Commission, when acting as a controller or a joint controller, shall consult those organisations on potential grounds for imposing the restrictions as referred to in paragraph 1, and the necessity and proportionality of such restrictions before applying a restriction referred to in paragraph 1.

4.Where the customs authorities, the Commission or the EU Customs Authority restrict, wholly or partly, the rights referred to in paragraph 1, they shall take the following steps:

(a)inform the data subject concerned, in its reply to the request, of the restriction applied and of the principal reasons therefore, and of the possibility of lodging a complaint with the national data protection authorities or the European Data Protection Supervisor or of seeking a judicial remedy in a national court or the Court of Justice of the European Union; and

(b)record the reasons for the restriction, including an assessment of the necessity for and proportionality of the restriction, and the reasons why providing access would jeopardise risk management and customs controls.

The provision of information referred to in point (a) of the first subparagraph may be deferred, omitted or denied in accordance with Article 25(8) of Regulation (EU) 2018/1725, or where the provision of that information would be prejudicial to the purposes of the restriction.

5.The customs authorities, the Commission or the EU Customs Authority shall include a section in the data protection notices published on its website/intranet providing general information to data subjects on the potential for restriction of data subjects’ rights.

6.The Commission shall lay down, by means of implementing acts, the safeguards to prevent the abuse and unlawful access or transmission of the personal data in respect of which restrictions apply or could be applied. Such safeguards shall include the definition of roles, responsibilities and procedural steps, and due monitoring of restrictions and a periodic review of their application, which shall take place at least every 6 months. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 36

EU Customs Data Model

The Commission is empowered to adopt delegated acts in accordance with Article 261 to supplement this Regulation in order to determine the data required for the fulfilment of the purposes referred to in Article 31(1) to (4). Those data requirements shall constitute the EU Customs Data Model.

Article 37

Technical means for cooperation

1.The Commission, the EU Customs Authority and the customs authorities shall use the EU Customs Data Hub when exchanging with the authorities and Union bodies referred to in Article 31(6) to (11) in accordance with this Regulation.

2.For the Union other formalities and systems listed in the Annex to Regulation (EU) 2022/2399, the EU Customs Data Hub shall ensure interoperability through the EU Single Window Environment for Customs established by that Regulation.

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.

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.

5.The Commission shall adopt, by means of implementing acts, the rules for technical modalities for interoperability and connection referred to in paragraphs 3 and 4. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 262(4).

Article 38

Exchange of additional information between customs authorities and economic operators

1.Customs authorities and economic operators may exchange any information not specifically required under the customs legislation, in particular for the purpose of mutual cooperation in the identification and counteraction of risk. That exchange may take place under a written agreement and may include access to the electronic systems of economic operators by the customs authorities.

2.Any information provided by one party to the other in the course of the cooperation referred to in paragraph 1 shall be confidential unless both parties agree otherwise or unless the provisions in force provide otherwise.

Article 39

Provision of information by the customs authorities

1.Any person may request information concerning the application of the customs legislation from the customs authorities. The customs authorities may refuse such a request where it does not relate to an activity pertaining to international trade in goods that is actually envisaged.

2.Customs authorities shall maintain a regular dialogue with economic operators and other authorities involved in international trade in goods. They shall promote transparency by making the customs legislation, general administrative rulings and application forms freely available, wherever practical without charge, and through the internet.

Article 40

Information and supporting documents

1.When providing or making available the data and information required for the specific customs procedure under which goods are placed or intended to be placed, persons shall provide or make available digital copies of original paper documents, where such paper originals exist, used to obtain that data and information.

2.Until the date set out in Article 266(3), when a customs declaration is lodged, the supporting documents required for the application of the provisions governing the customs procedure for which the goods are declared shall be in the declarant's possession and at the disposal of the customs authorities at the time of lodgement.

3.The supporting documents for the applicable Union non-customs formalities listed in the Annex to Regulation (EU) 2022/2399 shall be deemed to have been provided or made available or to be in the possession of the declarant if the customs authorities are able to obtain the necessary data from the corresponding Union non-customs systems through the European Union Customs Single Window Certificates Exchange System in accordance with Article 10(1), points (a) and (c), of that Regulation.

4.Supporting documents shall also be provided by persons where necessary for customs risk management and controls.

5.Without prejudice to other legislation applied by the customs authorities, customs authorities may authorise economic operators to draw up the supporting documents referred to in paragraph 3.

6.Unless otherwise stated for specific documents, the person concerned shall, for the purposes of customs controls, keep the documents and information for at least 3 years, by any means accessible by and acceptable to the customs authorities. That period shall run:

(a)from the end of the year in which the goods are released;

(b)from the end of the year in which they cease to be subject to customs supervision, in the case of goods released for free circulation duty-free or at a reduced rate of import duty on account of their end-use;

(c)from the end of the year in which the customs procedure concerned has been discharged or temporary storage has ended, in the case of goods placed under another customs procedure or of goods in temporary storage.

7.Without prejudice to Article 182(4), where a customs control in respect of a customs debt shows that the relevant entry in the accounts has to be corrected and the person concerned has been notified of this, the documents and information shall be kept for 3 years beyond the time limit provided for in paragraph 6 of this Article.

8.Where an appeal has been lodged or where administrative or judicial proceedings have begun, the documents and information shall be kept for the period provided for in paragraph 1 or until the appeals procedure or the administrative or judicial proceedings are terminated, whichever is the latest.

Title IV
CUSTOMS SUPERVISION, CUSTOMS CONTROLS AND RISK MANAGEMENT

Chapter 1
Customs supervision

Article 41

Customs supervision

1.Goods to be brought into or to be taken out of the customs territory of the Union shall be under customs supervision and may be subject to customs controls.

2.Goods brought into the customs territory of the Union shall remain under such supervision for as long as is necessary to determine their customs status.

3.Non-Union goods shall remain under customs supervision until their customs status is changed, or they are taken out of the customs territory of the Union or they are destroyed.

4.Upon entry into the customs territory of the Union, Union goods shall be subject to customs supervision until their customs status is confirmed, unless they are placed under the end-use procedure.

5.Union goods placed under the end-use procedure shall be subject to customs supervision in the following cases:

(a)where the goods are suitable for repeated use, for a period not exceeding 2 years after the date of their first use for the purposes laid down for applying the duty exemption or reduced rate of duty;

(b)until the goods have been used for the purposes laid down for the application of the duty exemption or reduced rate of duty;

(c)until the goods have been taken out of the customs territory of the Union, destroyed or abandoned to the State;

(d)until the goods have been used for purposes other than those laid down for the application of the duty exemption or reduced duty rate and the applicable import duty has been paid.

6.Union goods released for export or placed under outward processing shall be subject to customs supervision until they are taken out of the customs territory of the Union, are abandoned to the State or destroyed or the customs declaration or relevant data on the export is invalidated.

7.Union goods placed under internal transit shall be subject to customs supervision until they arrive to their destination in the customs territory of the Union.

8.The holder of goods under customs supervision may, with the permission of the customs authorities, at any time examine the goods or take samples, in particular in order to determine their tariff classification, customs value or customs status.

Article 42

Competent customs offices

1.Except where other legislation applied by the customs authorities provides otherwise, Member States shall determine the location and competence of their customs offices.

2.Member States shall ensure that official opening hours of those offices are reasonable and appropriate, taking into account the nature of the traffic and of the goods and the customs procedures under which they are to be placed, so that the flow of international traffic is neither hindered nor distorted.

3.The competent customs office for supervising the placement of the goods under a customs procedure shall be the customs office responsible for the place where the importer or the exporter is established.

By way of derogation from the first subparagraph, the competent customs office for supervising the placement of the goods under a customs procedure in relation to importers and exporters other than Trust and Check traders and deemed importers shall be the customs office responsible for the place where the customs declaration has been lodged or would have been lodged in accordance with Article 63(4) but for the modification concerning the method of providing information laid down in Article 63(2).

4.The customs office responsible for the place of establishment of the Trust and Check trader or the deemed importer shall:

(a)supervise the placing of the goods under the customs procedure concerned;

(b)    carry out the customs controls for the verification of the information provided, and request additional supporting documents if needed;

(c)where justified, request the customs office responsible for the place of dispatch or final destination of the goods to carry out a customs control;

(d)where there is a risk that requires action as soon as the goods arrive to the customs territory of the Union or before they leave the customs territory of the Union, request the customs office responsible for the place where the goods enter or exit to perform customs controls; 

(e)carry out the customs formalities for the recovery of the amount of import or export duty corresponding to any customs debt.

5.The customs office responsible for the place of dispatch or final destination of the goods, or, pursuant to paragraph 4, point (d) for the place where the goods enter or exit the customs territory of the Union, shall carry out the customs controls requested by the customs office responsible for the place of establishment of the importer and provide that customs office with the results of these controls, without prejudice to its own controls pertaining to goods brought into or taken out of the customs territory of the Union.

6.The competent customs offices shall have access to the information necessary for ensuring the correct application of the legislation.

8.The Commission shall specify, by means of implementing acts, the procedural rules for determining the competent customs offices other than the one referred to in paragraph 3, including customs offices of entry and customs offices of exit and the procedural rules for cooperation between customs offices as referred to in paragraph 5. These implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Chapter 2
Customs controls

Article 43

Customs controls

1.Without prejudice to the provisions in Chapter 3 of this Title, the customs authorities may carry out any customs controls they deem necessary, including random controls.

2.Customs controls may in particular consist of examining goods, taking samples, verifying the authenticity, integrity, accuracy and completeness of the data provided by any person and the existence, authenticity, accuracy and validity of documents, examining the accounts and commercial records and data sources of economic operators, inspecting means of transport, inspecting luggage and other goods carried by or on persons and carrying out official enquiries and other similar acts. When necessary, customs controls include processing of the electronic data, including data source of the data provided to the EU Customs Data Hub.

3.Where, in respect of the same goods, controls other than customs controls are to be performed by other authorities, customs authorities shall, in close cooperation with those other authorities, endeavour to have those controls performed, wherever possible, at the same time and place as customs controls (one-stop-shop), with customs authorities having the coordinating role.

Article 44

Verification of the data provided

1.The customs authorities may, for the purpose of verifying the accuracy of the data provided by persons to the customs authorities:

(a)examine the data and the supporting documents, including accessing data sources held by the economic operators or stored on their behalf by service providers;

(b)require the provision of other documents or data, including data held by the economic operators or stored on their behalf by service providers;

(c)require access to the electronic records of the person;

(d)examine the goods;

(e)take samples for analysis or for detailed examination of the goods.

2.The customs authorities may at any time require goods to be unloaded and unpacked for the purpose of examining them, taking samples or examining the means of transport carrying them.

3.The Commission shall specify, by means of implementing acts, the measures on the verification of information referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 45

Examination and sampling of goods

1.Transport of the goods to the places where they are to be examined and where samples are to be taken, and all the handling necessitated by such examination or taking of samples, shall be carried out by or under the responsibility of the importer, exporter or carrier. The costs incurred shall be borne by the importer or exporter.

2.The importer, exporter or carrier shall have the right to be present or represented when the goods are examined and when samples are taken. Where the customs authorities have reasonable grounds for so doing, they may require the importer, exporter or carrier to be present or represented when the goods are examined or samples are taken or to provide them with the assistance necessary to facilitate such examination or taking of samples.

3.Provided that samples are taken in accordance with the provisions in force, the customs authorities shall not be liable for payment of any compensation in respect thereof but shall bear the costs of their analysis or examination.

4.Where only part of the goods is examined, or samples are taken, the results of the partial examination, or of the analysis or examination of the samples, shall be taken to apply to all the goods in the same consignment.

However, the importer or the exporter may request a further examination or sampling of the goods if he or she considers that the results of the partial examination, or of the analysis or examination of the samples taken, are not valid as regards the remainder of the goods concerned. The request shall be granted provided that the goods have not been released or, if they have been released, that the importer or the exporter proves that they have not been altered in any way.

5.The Commission shall specify, by means of implementing acts, measures on the examination and sampling of goods referred to in this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 46

Results of the verification

1.The results of verifying the data provided by the importer, exporter or carrier shall be used for the application of the provisions governing the customs procedure under which the goods are placed.

2.Where the data provided is not verified, paragraph 1 shall apply on the basis of the data provided by the importer or the exporter.

3.The results of the verification made by the customs authorities shall have the same conclusive force throughout the customs territory of the Union.

4.The Commission shall specify, by means of implementing acts, measures on the results of the verification referred to in this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 47

Identification measures

1.The customs authorities or, where appropriate, economic operators authorised to do so by the customs authorities, shall take the measures necessary to identify the goods where identification is required in order to ensure compliance with the provisions governing the relevant customs procedure under which the goods are intended to be placed.

Those identification measures shall have the same legal effect throughout the customs territory of the Union.

2.Means of identification affixed to the goods, packaging or means of transport shall be removed or destroyed only by the customs authorities or, where they are authorised to do so by the customs authorities, by other persons, unless, as a result of unforeseeable circumstances or force majeure, their removal or destruction is essential to ensure the protection of the goods or the means of transport.

3.The Commission shall specify, by means of implementing acts, which measures constitute the identification measures referred to in this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 48

Post-release controls

1.For the purpose of customs controls, the customs authorities may, after the release of the goods: 

(a)verify the accuracy and completeness of the data provided and the existence, authenticity, accuracy and validity of any supporting document;

(b)examine the accounts of the economic operator and other records relating to the operations in respect of the goods in question and prior or subsequent commercial operations involving those goods;

(c)examine such goods and take samples where it is still possible for them to do so;

(d)access operators’ systems to verify compliance with the obligation to provide or make available data to the EU Customs Data Hub.

2.Such controls may be carried out at the premises of the importer or exporter, or of the holder of the goods, or of any other person directly or indirectly involved in those operations in a business capacity or of any other person in possession of those documents and data for business purposes.

3.The Commission shall specify, by means of implementing acts, the measures that shall apply to the controls referred to in paragraph 1, including in cases where operations take place in more than one Member State, and on the application of audit and other appropriate methodologies in the context of such controls. Those implementing acts shall be adopted in accordance with Article 262(4).

Article 49

Intra-Union flights and sea crossings

1.Customs controls or formalities shall be carried out in respect of the cabin and hold baggage of persons either taking an intra-Union flight, or making an intra-Union sea crossing, only where the customs legislation provides for such controls or formalities.

2.Paragraph 1 shall apply without prejudice to:

(a)security and safety;

(b)controls linked to other legislation applied by the customs authorities.

3.The Commission shall determine, by means of implementing acts, the ports or airports where customs controls and formalities are applied to the following:

(a)the cabin and hold baggage of persons:

(i)taking a flight in an aircraft which comes from a non-Union airport and which, after a stopover at a Union airport, continues to another Union airport;

(ii)taking a flight in an aircraft which stops over at a Union airport before continuing to a non-Union airport;

(iii)using a maritime service provided by the same vessel and comprising successive legs departing from, calling at or terminating in a non-Union port;

(iv)on board pleasure craft and tourist or business aircraft;

(b)cabin and hold baggage:

(i)arriving at a Union airport on board an aircraft coming from a non-Union airport and transferred at that Union airport to another aircraft proceeding on an intra-Union flight;

(ii)loaded at a Union airport onto an aircraft proceeding on an intra-Union flight for transfer at another Union airport to an aircraft whose destination is a non-Union airport.

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

Chapter 3
Customs risk management

Article 50

General principles

1.The customs authorities shall determine, based on risk management and primarily on automated risk analysis, whether goods, economic operators and supply chains will be subject to customs controls or other mitigation measures, and if so, where and when those controls and other mitigation measures will take place,

2.The Commission, the EU Customs Authority and the customs authorities shall use customs risk management to differentiate between the levels of all risks associated with goods, economic operators and supply chains in accordance with the provisions in this chapter.

3.Customs risk management shall include at least the following activities, where appropriate organised on a cyclical basis:

(a)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;

(b)identifying, analysing, assessing, or predicting risks, including based on statistical and predictive methods and random controls;

(c)developing the necessary measures to manage the risks, including establishing common priority control areas, common risk criteria and standards, and supervision strategies;

(d)prescribing and taking action, including selecting appropriate mitigation measures and customs controls;

(e)gathering feedback on the implementation of risk management and control activities;

(f)monitoring and reviewing risk management and control activities with a view to improving them.

4.Mitigation measures may include the following:

(a)instructing the carrier or exporter that the goods shall not be loaded or transported;

(b)requesting additional information or action;

(c)identifying situations where action by another customs authority may be appropriate;

(d)recommending the most appropriate place and measures to carry out a control;

(e)determining the route to be used, and the time-limit to be respected when goods are to be taken out of the customs territory of the Union.

Article 51

Roles and responsibilities

1.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. 

2.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.

3.The Commission may:

(a)provide policy orientations to the EU Customs Authority on risk management projects and supervision strategies;

(b)request the EU Customs Authority to carry out a periodic or ad-hoc evaluation of the implementation of any risk management activities;

(c)request the EU Customs Authority to prepare a supervision strategy for any risk and to conduct threat assessments.

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.

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

(a)collect, process and analyse data available in the EU Customs Data Hub and from other sources, including from authorities other than customs authorities;

(b)    assist the Commission in defining common priority controls areas and common risk criteria and standards, based on operational knowledge and technical expertise in risk management;

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

(d)exchange relevant data with the customs authorities and with other authorities for the purposes of this Title, where possible through the EU Customs Data Hub, in accordance with Article 53;

(e)develop and implement common risk analysis to generate risk signals, risk analysis results and where appropriate, issue control recommendations and other appropriate mitigation measures to the customs authorities, including for the application of the common priority control areas and the common risk criteria and standards established by the Commission and for dealing with crisis situations;

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

6.The customs authorities shall, using data available in the EU Customs Data Hub and from other sources:

(a)collect, process and analyse data available in the EU Customs Data Hub and from other sources, including from authorities other than customs authorities;

(b)perform national risk management activities, including risk analysis, cooperation, and exchange of information on risk management with relevant national authorities, and taking mitigation measures;

(c)implement national processes necessary for the implementation of common risk criteria and standards and common priority control areas;

(d)implement the risk signals, risk analysis results and control recommendations generated by the EU Customs Authority;

(e)issue control recommendations and indicate other appropriate mitigation measures to the customs authorities of other Member States;

(f)take control decisions;

(g)perform controls in accordance with Chapter 2 of this Title and with any applicable common risk criteria and standards;

(h)provide a justification to the EU Customs Authority in the event that a control recommendation was not executed.

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

8.Until the date set out in Article 265(1), the Commission may carry out the risk management tasks of the EU Customs Authority referred to in this Article.

Article 52

Common risk criteria and standards

1.The common risk criteria and standards shall include all of the following:

(a)a description of the risks;

(b)the factors or indicators of risk to be used to select goods or economic operators for customs controls;

(c)the nature of customs controls to be undertaken by the customs authorities;

(d)the application of risk analysis and mitigation measures in the supply chain, including requests for information or action and instruction not to load or transport;

(e)the duration of the application of the customs controls referred to in point (c).

2.In the establishment of common risk criteria and standards, account shall be taken of all of the following:

(a)the proportionality to the risk;

(b)the urgency of the necessary application of the controls;

(c)the reasonably expected impact on trade flow and on individual Member States control resources.

Article 53

Information relevant for risk management and controls

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.

2.The customs authorities, the EU Customs Authority and the Commission shall have the right to process the elements referred to in paragraph 1 of this Article according to their roles and responsibilities as referred to in Articles 51 and  54.

3.The EU Customs Authority shall use the EU Customs Data Hub where possible to collect, or interoperate with, any other sources of data, documents or information identified as relevant for risk management by the EU Customs Authority, by the Commission or by a customs authority.

4.Until the date set out in Article 265(1), the Commission shall carry out the tasks of the EU Customs Authority referred to in this Article.

Article 54

Evaluation of customs risk management

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 2 years; the Commission may in addition arrange evaluation activities to be carried out where it considers necessary, and on an ongoing basis.

2.For this purpose, the EU Customs Authority shall collect and analyse relevant information and carry out all necessary activities. The EU Customs Authority may request periodic or ad-hoc reports from one or more Member States in this regard.

3.For this purpose, and for the purpose of fulfilling its role and responsibilities under this Title, the Commission may process any relevant information available through the EU Customs Data Hub and may request further information from the EU Customs Authority and from national authorities.

4.In the establishment of common risk criteria and common priority control areas, the Commission shall take account, where relevant, of evaluations carried out under this Article.

Article 55

Conferral of implementing powers

1.The Commission shall adopt, by means of implementing acts, 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 referred to in this Title. Such measures shall address at least the following elements:

(a)the information to be recorded in the EU Customs Data Hub in relation to risk management and controls, including in respect of risk information, risk analysis results, control recommendations, control decisions and control results, and the rights to access and process such information;

(b)procedural measures for the transitional use or access to existing customs information systems procedural measures for the management of interoperability between the EU Customs Data Hub and other systems;

(c)procedural measures in relation to the application of the reporting requirement in the context of post-release controls and random controls;

(d)arrangements for cooperation, including exchange of information, between the EU Customs Authority and specific other Union institutes, bodies and offices, and other national competent authorities;

(e)the identification of the responsible customs authority in the case of specific risk management processes, which may concern more than one Member State;

(f)procedural aspects of controls, including post-release controls, which concern more than one Member State, and the availability of results of samples and other controls between the customs authorities concerned;

(g)arrangements for the sharing of risk information between customs authorities, the EU Customs Authority and with the Commission;

(h)common priority control areas and common risk criteria and standards as referred to in Article 51(1) and (2) and Article 52, including the modalities for their application on an urgent basis where this is necessary.

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

2.On imperative grounds of urgency relating to such measures, including the modalities for their application on an urgent basis to respond effectively to crisis or incidents which may pose an imminent safety or security risk, and duly justified by the need to rapidly update common risk management and adapt the exchange of information, common risk criteria and standards, and common priority control areas to the evolution of risks, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 262(5).

Title V
PLACING GOODS UNDER A CUSTOMS PROCEDURE

Chapter 1
Customs status of goods

Article 56

Presumption of customs status of Union goods

1.All goods in the customs territory of the Union shall be presumed to have the customs status of Union goods, unless it is established that they are not Union goods.

2.In specific cases, where the presumption laid down in paragraph 1 does not apply, the customs status of Union goods shall need to be proven.

3.In specific cases, goods wholly obtained in the customs territory of the Union do not have the customs status of Union goods if they are obtained from goods in temporary storage or placed under the external transit procedure, a storage procedure, the temporary admission procedure or the inward processing procedure.

4.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining:

(a)the specific cases where the presumption laid down in paragraph 1 does not apply;

(b)the conditions for granting facilitation in the establishment of the proof of customs status of Union goods;

(c)the specific cases where the goods referred to in paragraph 3 do not have the customs status of Union goods.

5.The Commission shall specify, by means of implementing acts, the procedural rules for the provision and verification of the proof of the customs status of Union goods. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 262(4).

Article 57

Loss of customs status of Union goods

Union goods shall become non-Union goods in the following cases:

(a)where they are taken out of the customs territory of the Union, insofar as the rules on internal transit do not apply;

(b)where they have been placed under the external transit procedure, a storage procedure or the inward processing procedure, insofar as the customs legislation so allows;

(c)where they have been placed under the end-use procedure and are either subsequently abandoned to the State, or are destroyed and waste remains;

(d)    where the declaration for release for free circulation is invalidated after release of the goods.

Article 58

Union goods leaving the customs territory of the Union temporarily

1.In the cases referred to in Article 112(2), points (b), (c), (d) and (e), goods shall keep their customs status as Union goods only if that status is established under the conditions and by the means laid down in the customs legislation.

2.In specific cases, Union goods may move, without being subject to a customs procedure, from one point to another within the customs territory of the Union and temporarily out of that territory without alteration of their customs status.

3.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining the specific cases where the customs status of goods referred to in paragraph 2 of this Article is not altered.

Chapter 2
Placement and release

Article 59

Placement of goods under a customs procedure 

1.Importers, exporters and holders of the procedure intending to place goods under a customs procedure shall provide or make available the data necessary for the concerned procedure as soon as it is available and in any event prior to the release of the goods.

2.Deemed importers shall provide or make available the information on distance sales of goods to be imported in the customs territory of the Union at the latest on the day following the date when the payment was accepted and in any event prior to the release of the goods.

3.By way of derogation from paragraph 1, in duly justified circumstances linked to the supporting documentation or the determination of the final value of the goods, the customs authorities may authorise Trust and Check traders to provide part of the data other than advance cargo information after the release of the goods. The importer or the exporter shall provide the omitted information within a specific time-limit.

4.The goods shall be placed under the customs procedure upon their release. The date of the release shall, except where otherwise provided, be the date to be used for the application of the provisions governing the customs procedure in which the goods are placed and for all other import or export formalities.

5.The Commission is empowered to adopt delegated acts, in accordance with Article 261, to supplement this Regulation by determining the data and information referred to in paragraphs 1 and 2 of this Article, and the specific data that can be provided after release of the goods and the time-limits for providing such data as referred to in paragraph 3 of this Article.

Article 60

Release of the goods

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 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.

2.Goods shall be released if the following conditions are met:

(a)an importer or exporter is responsible for the goods;

(b)any information requested by customs authorities and the minimum information necessary for the particular procedure has been provided or made available to customs authorities;

(c)the conditions for placing the goods under the procedure concerned pursuant to Articles 88, 118, 132 and 135 are fulfilled;

(d)the goods have not been selected for any control.

3.The customs authorities shall refuse the release in any of the following cases:

(a)where the conditions for placing the goods under the procedure concerned are not fulfilled, including any Union non-customs formalities as defined in point 11 of Article 2 of Regulation (EU) 2022/2399 relevant for the goods;

(b)where they have any evidence that the goods do not comply with the relevant other legislation applied by the customs authorities, unless that legislation requires consulting other authorities beforehand;

(c)where they have evidence that the data provided is not accurate.

4.The customs authorities shall suspend the release in any of the following cases: