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On 31 March, the Wise Persons Group published its final report on the future of the EU Customs Union. The Group concludes that EU Customs needs an urgent structural change which, building on the reforms of the last decade, will take Customs to the next level and prepare them to address modern challenges, such as new trade models and growing trade volumes, technological developments, the green transition, the new geopolitical context and security risks.

The Group advocates for fundamental and wide-ranging reforms in 5 areas including revised and simpler customs legislation, a new framework of responsibility and trust, streamlined procedures and reduced administrative burden, a new approach to data and a more effective governance. The report comprises the following recommendations:

1. The European Commission by the end of 2022 tables a package of reforms, including of the UCC, implementing the recommendations relating to processes, responsibilities and liabilities, and governance of the EU Customs Union.
2. Introduce a new approach to data, focussed on obtaining better quality data based on commercial sources, ensuring it is cross validated along the chain, better shared among administrations, and better used for EU risk management. Provide businesses with a single data entry point for customs formalities and a single window/portal. Data to be stored and properly managed in a central data warehouse.
3. Setting up of a comprehensive framework for cooperation, including data sharing between Customs, Market Surveillance Authorities and other Law Enforcement bodies and tax authorities for a comprehensive management of risks at EU level.
4. A European Customs Agency should be set up to provide EU value-added services to the Commission and the Member States.
5. Introduce a System-Based Approach centred on a reformed AEO scheme expanded in scope, multi-layered and more effective, to better facilitate trade with trust.
6. Introduce a new ABC model (Authorised, Bonded or subject to greater control), in which operators would seek AEO status to gain commercial access to the EU market.
7. Remove the customs duty exemption threshold of EUR 150 for e-commerce and provide some simplification for the application of Customs duties rates for low value shipments.
8. To implement a package of measures to green EU Customs.
9. Properly resource, skill and equip Customs to ensure their capacity to fulfil their missions.
10. Introduce an annual Customs Revenue Gap Report based on an agreed methodology and data framework to better manage Customs revenue collection.

The recommendations will now be discussed with the European Parliament and Member States. As announced in the 2020 Customs Action Plan, the Commission will set up a ‘Reflection Group’, involving Member States, to debate and operationalise the recommendations. Based on this input, and on broader consultations with stakeholders, the Commission will table a customs reform package by the end of the year.