The European Economy and Finance Ministers, meeting in Council, discussed progress on the Customs Union reform package, which includes a new framework for e-commerce and revised value added tax (VAT) rules (see EUROPE 13278/21). This reform also includes a restructuring of the operation of customs authorities in the EU and establishes a new ‘EU Customs Authority’ (see EUROPE 13356/8).
During the public debate, Mihály Varga, the Hungarian Finance Minister, reported on the intense discussions on this subject, with 73 working group meetings organised, 28 of them by the Hungarian Presidency of the EU Council. “Speed cannot take precedence over quality”, he maintained. The Member States have indicated that their priorities are the provisions of the Customs Authority, the customs data centre and e-commerce.
In their speeches, the ministers made it clear that this last point was a priority. The Danish minister, Stephanie Lose, spoke of health safety, in particular goods containing “contagious, dangerous chemicals”. “This is really an important issue, and it has a huge impact on consumers [and] companies in the European Union”, she stressed, calling for rapid solutions.
She and some of her counterparts mentioned the need to reduce the administrative burden for authorities and operators. She expressed concern about an increase in administrative costs. Maroš Šefčovič, the Commissioner for Trade and Economic Security, replied that the impact study had estimated the savings for all EU Member States resulting from the simplification of the single system and much better data sharing at €2.5 billion per year.
“Simplification should only be focused on goods imported in bulk [because they] are easier to monitor and control”, argued Eelco Heinen, from the Netherlands. For his part, Austria’s Gunter Mayr has stated his firm support for eliminating the exception for goods costing €150 or less as quickly as possible.
“Competition with e-commerce is absolutely okay and is accepted, but it has to happen on fair and truly competitive terms and conditions”, said Germany’s Jörg Kukies. His Bulgarian counterpart, Lyudmila Petkova, also endorsed the idea of simplifying procedures: “It will provide an opportunity to create a genuine custom union that acts as one and best serves to protect the security of the single market and the trade sectors”.
The Commissioner called on the Member States to reach a political agreement quickly, so that the first phase of this new reform package, with the first phase of the operation of the customs authority, could begin as early as 2026.
“We consider the finalisation of these negotiations within the Council to be one of the most ambitious priorities of our Presidency”, said Andrzej Domanski, the Polish Minister. The Polish Presidency begins on Wednesday 1 January 2025.
To see the Hungarian Presidency’s progress report, go to https://aeur.eu/f/erj (Original version in French by Anne Damiani)