EU Customs Plan Includes New Single Window, Modern Customs Equipment for Member States

The European Union announced new initiatives to support its Customs Union and tackle a rise in smuggling, fraud and other trade challenges faced by member states. The initiatives, part of the EU’s Sept. 28 Customs Union Action Plan, include measures to combat customs duty fraud, a rollout of modern customs equipment under the next EU budget and an EU-wide single customs portal.

The European Commission said “it has become apparent in recent years that Member States' customs authorities are struggling with the challenges of performing their various roles,” pointing to challenges caused by the COVID-19 pandemic and the United Kingdom’s upcoming departure from the customs territory after Brexit. “Our customs authorities must be equipped with cutting-edge technical equipment and analytical capacities that allow customs to better predict risky imports and exports,” the commission said in a Sept. 28 press release.

In a guidance, the commission said it will issue new “state-of-the-art customs control equipment” to member states in 2021 to “carry out better and more effective controls.” The commission is also expected to propose a “single window initiative” in October, which will allow traders to “complete all border formalities” in “one online entry.” The single window will speed up clearance times and decrease customs costs, the commission said.

Other measures include new obligations on payment service providers to fight customs duty and tax fraud, a new “analytics hub” for collecting and sharing customs data, and increased customs cooperation with trading partners. The commission said it wants to complete a new customs agreement with China before the end of the year and hopes to launch a “comprehensive analysis” of its customs work with other countries.

The measures are “imperative” for the future of the Customs Union, said Paolo Gentiloni, the commission’s economic policy chief, according to prepared remarks. He said the EU needs to face its customs challenges, including growing fraud issues and the need for better analytical trade tools and more international collaboration. “In the face of new challenges and threats,” Gentiloni said, “we need cutting-edge solutions to make customs more resilient and future-proof.”