EU Customs Reform in 2023: The Data- Driven Approach

Abstract

In May 2023 the European Commission released the proposal of reforming the EU Customs Union. This reform proposal is the most ambitious and comprehensive reform since 1968.1 The EU Customs Reform Package in 2023 has several policy objectives: (1) Providing traders an EU-level centralized electronic interface ‘EU Customs Data Hub’ (in the impact assessment report it is called EU Customs Data Spaces) so traders can upload information and have the overview of the whole supply chain and reduce compliance costs; (2) Establishing a new EU Customs Authority to perform more harmonized customs controls and risk management (3) Providing a tailored solution for e-commerce imports, especially transactions via online platforms. This paper inquires how the EU Customs Reform Package will address the problem of under-levy of custom duties of imported goods, especially low-value (up to EUR 150) goods from non-EU jurisdictions via online marketplace platforms (such as eBay, Amazon, AliExpress). This aspect is also where customs law, VAT legislation and the platforms’ reporting obligations in the field of direct taxation (DAC 7) intersect closely.

The structure of the paper is designed as follows: Section 2 explains the key elements in the EU Customs Reform Package. Section 3 discusses experiences from implementing EU VAT since the EU VAT reform is a claimed success that EU Customs Reform Package is based upon. Section 4 concludes this paper.

Keywords: EU, Customs, reform

JEL Classification: K34