🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

EU seeks to simplify customs system, tighten up on e-commerce

Published 05/17/2023, 06:03 AM
Updated 05/17/2023, 06:06 AM
© Reuters. FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 1, 2023.REUTERS/Johanna Geron/

By Philip Blenkinsop

BRUSSELS (Reuters) - The European Commission proposed on Wednesday a reform of customs rules for the surge of incoming packages ordered online and to cope with increased environmental and labour standards and sanctions on imported goods.

Under the proposal, the European Union will have a new customs authority and a single online data system. At present, importers need to deal with 27 national customs authorities and more than 111 separate interfaces and IT systems.

The reform, which still needs backing from the European Parliament and EU governments, would enable traders to provide information on imports via the EU Customs Data Hub, giving an overview of individual supply chains.

The streamlined system, including "Trust and Check" traders from 2032, will reduce paperwork and could save businesses 2.7 billion euros ($2.97 billion) a year in compliance costs, while allowing customs authorities to focus less on processing each consignment and more on problematic imports and supply chains.

EU countries should save up to 2 billion euros per year in IT development and maintenance costs as the EU hub takes over.

The customs hub will apply for e-commerce from 2028 and be open to other traders from 2032, becoming mandatory from 2038.

© Reuters. FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 1, 2023.REUTERS/Johanna Geron/

For e-commerce, an exemption from customs duty on goods valued at less than 150 euros would be abolished. The Commission said an estimated 65% of parcels entering the EU were deliberately undervalued or split up to avoid paying duty.

Platforms selling goods from non-EU countries would also in future be responsible for ensuring customs duties and VAT are paid at purchase, with customs duties to be simplified into four categories. At the moment, consumers can be hit by hidden charges and paperwork before a parcel can be delivered. ($1 = 0.9084 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.