Communication: Developing the EU Customs Union and its governance

This Communication addresses the question of how the Commission and the Member States can act in partnership to ensure that the operation of the Customs Union makes the best possible contribution to EU prosperity and security. The Customs Union, which is now approaching 50 years of operation, was an early example of successful integration in the EU. It created the conditions for establishing the single market and served as a stable foundation for economic integration and growth. A strong and well managed Customs Union can enable the EU to prosper and develop competitive businesses, to protect its revenue sources and protect the public against terrorist, health, environmental and other threats. As in many policy areas success requires addressing tensions between individual Member States concerns and the strategy to achieve common goals.

In an era where terrorism and other serious crimes operate on a cross-border and trans-national basis, customs authorities are increasingly called upon, as law enforcement authorities dealing with borders control, to carry out non-fiscal tasks aimed at improving internal EU security. The role played by customs in the security area is particularly relevant in preventing terrorist organisations from moving their funds and in disrupting their sources of revenue, as recognised in the Commission's Action Plan for strengthening the fight against terrorist financing. However, more must be done to coordinate the different policy areas involved in border management and enhance the cooperation and synergies between the various law enforcement authorities to contribute to an effective and sustainable Security Union. Better information exchange is key in that respect.

Rapidly changing technologies and business models, allied to increasing volumes of world trade, a persistent transnational crime and security threat, an expanding and deepening EU and the increasing number of tasks to be performed by customs have all put pressure on the working of the Customs Union. This has led to a major reworking of the legislative framework through the adoption and implementation of the Union Customs Code (UCC). The aim was to create a framework which enables honest and legitimate European businesses to face competition in the global economy on a day-to-day basis without being hindered by unnecessary red tape, while being supported by unified, computerised and efficient customs services across the EU.

While customs legislation is adopted at EU level, its implementation is the responsibility of the Member States via their national customs administrations. The nature of the Customs Union, however, creates interdependence between national administrations which must be recognised if the maximum benefits are to be obtained. The implementation challenge calls for equivalence of results by customs authorities operating in different geographical, budgetary and organisational conditions. Moreover, the interlinks between customs and other policy areas related to security and border control call for a more joined-up and cross-sectorial approach aimed, inter alia, at exploiting the full potential of closer cooperation between customs authorities and other law enforcement authorities, including through synergies and interoperability between information systems.

Therefore, for the Customs Union it is now crucial to ensure that the UCC can be implemented in an effective and efficient way by customs administrations that act as though they were one, at the same time cooperating effectively with administrations responsible for other relevant policies with border and internal security implications. This is crucial for the correct implementation of the new UCC which, given its emphasis on fully electronic communication between the customs administrations and with trade, would only be possible on the basis of EU wide interoperable IT systems and uniform application of rules by all EU customs administrations. This is also crucial in the current political context, given the role played by customs in protecting EU citizens.

Within the existing institutional framework, this requires a revitalised partnership between Member States and the Commission in order to put in place:
- a shared overall management vision for the Customs Union between all Member States and the Commission to ensure more flexible and effective cooperation and better rule-making;
- more effective enforcement of rules through better co-ordination of, and co-operation between, operational services on the ground;
- a stronger role for customs in ensuring joined-up border management and law enforcement, developing closer cooperation and enhanced information exchange with administrations involved in other relevant policy areas;
- a long-term IT strategy to provide cost-effective processes for customs administrations and business and synergies with other relevant policy areas;
- strengthened performance of customs administrations everywhere in the EU through the expanded use of best practices and innovative shared solutions, including addressing their financial needs.

• Primary Source

ESO: Background information: Commission sets out the strategic way forward for the EU's Customs Union http://www.europeansources.info/record/commission-sets-out-the-strategic-way-forward-for-the-eus-customs-union/

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