The Union Customs Code (UCC), the legal framework governing the EU’s customs system, is heading for a major reform. To update economic operators on what lies ahead, Air Cargo Belgium (ACB) organized a two-hour seminar.
Werner Rens, Advisor-General of the Belgian Administration of Customs & Excise, outlined what the reform could mean for the EU’s logistics sector. He noted that although the current UCC came into force in 2016, the so-called customs ‘union’ still does not operate as a single system. “The main reason is that each administration still carries out its own risk analysis using its own tools,” he said.
In her State of the Union of 2019, EC President Ursula von der Leyen had pledged to take the customs union to its next level. “I will propose a bold package for an integrated European approach to reinforce customs risk management and support effective controls by the member States,” she said at the time.
The Commission steps in
The first reform proposal emerged in 2023, without any feedback from the trade industry, whatsoever. However, as the process continued, the European Commission came forward with a draft of its own. The EC did not bother to consult experts, even though it later took specialists more than a year to fully understand the document. This time, however, some feedback from the trade sector was taken into account.
Mr. Rens cautioned that this proposal should not yet be seen as binding legislation. “The text is still under review. It is very interesting to see the difference between the current text and what was proposed three years ago.”
European Customs Authority
The reform is driven by two main pressures: increasing demands on customs authorities and businesses, and the rapid growth of e-commerce. In 2023, the reform was built around creating a simpler as well as a stronger customs union. Today, businesses must deal with up to 27 national customs administrations, complex procedures, unclear responsibilities, multiple interfaces, and 111 separate IT systems.
Under the reform, customs data would be submitted through a single EU-level interface, turning customs into a 24/7 one-stop shop. The changes would also clarify importer and exporter liability, while trusted partners would benefit from a Trust & Check system.
A European Customs Authority employing 250 to 300 people, will be set up in the French border city of Lille. Under the 2023 roadmap, the full system would become operational by 2038.
Bye-bye declarations
One of the big changes will be in the abolition of declarations, which will be replaced by login data in a central EU database. Interesting to note is the definition of ‘importer’. In certain cases, the carrier who brings the goods into the customs territory can be considered as such – and is responsible for data provision even if he is not the owner of the goods.
In principle, there are two sets of data: transaction (sale) related data and data known by the importer. The crux of the matter is who will provide this data, said Werner Rens.
“In most cases this will be the logistics operators and the carriers.” Customs representatives, both direct and indirect, will have their work cut out in the years to come. “Three years ago, there was one single liable party. In the new proposals, that is not clear anymore,” said Werner Rens. On the positive side, the EC’s proposal moves the eventual full implementation of the UCC Reform up to 2034. Until then, the cargo communities in the EU’s air, sea and other main ports, will have to keep their members informed and aligned.
