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European Union: Study finds divergence in implementation of customs rules and processes creates efficiency barriers

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Although the formal requirements for bringing goods into the Customs Union of the EU are largely harmonised by EU customs legislation, authorisation procedures for bringing goods into the Union vary per Member State.

The Think Tank of the European Parliament has conducted a study into the authorisation procedures of the various Member States for entry of goods into the EU, which was published on 19 December 2022. While the Think Tank acknowledges the need for effective customs controls, it also argues that the divergence in the practices of Member States can create efficiency barriers, such as the time needed for customs controls.

Broadly speaking, the Think Tank has found key differences in the Member States’ practices when it comes to the following three areas:

  1. The IT systems that process customs declarations. Even though the same customs declarations have to be filed throughout the EU, all 27 EU Member States have their own, unique IT system for submitting and processing these declarations.
  2. Although the EU has harmonised customs legislation (including legislation on prohibition and restrictions), implementation of this legislation varies across Member States. This divergence leads to undesirable different practices by EU Member States.
  3. EU Member States are responsible for implementing their own sanction and infringement regime. Due to this national competence, the sanction and infringement regimes can vary widely between the Member States. As an example, whereas some EU Member States merely apply an administrative regime for customs infringements, other Member States apply criminal sanctions to the same infringements.

The Think Tank ends the report with a number of recommendations, aimed at improving the unity of the customs procedures throughout the EU, such as implementing a single unified customs control mechanism and updating the various IT systems in line with the UCC and its implementation plan. The EU legislator is already working towards unifying the customs control mechanism of the various EU Member States, as it announced a single window for customs in October 2022. The full report can be accessed here.

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Jennifer Revis is a partner in Baker McKenzie's London office and co-leads our EMEA Customs Team.
Jennifer focuses her practice on the public regulation of international trade, particularly in a wide range of customs compliance issues. She regularly advises clients on import matters, including customs valuation, rules of origin, and classification. She has worked with clients designing and implementing their compliance programs, policies, procedures and risk assessments, and assisting them in customs audits. She has significant experience in managing global customs projects and disputes, particularly in the area of customs valuation (transfer pricing; assists; royalties). Jennifer also advises on FTAs and trade remedies matters.
Jennifer has been consistently recognised as a "Leading Individual" for Customs & Excise and “Next Generation Partner” for Trade, WTO Anti-Dumping And Customs. Clients describe her as "an outstanding customs lawyer and litigator with fantastic experience. She is also easy to work with and leads her team with aplomb", "without a doubt, one of the best customs lawyers in the business (…) with an exceptionally deep knowledge of customs valuation concepts, as well as considerable experience applying those concepts in a variety of jurisdictions."
Jennifer has been on secondment to the UK customs authorities (Her Majesty's Revenue and Customs) in their tax and excise litigation department and to the Firm's European Law Centre in Brussels.

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Olof Johannesson is a member of Baker McKenzie’s International Commercial & Trade Group in Stockholm. Prior to joining the Firm in August 2017, he worked at other law firms in Gothenburg between 2015 and 2017, and in Brussels between 2014 and 2015.

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Alexandra Pasch is a Summer Associate in Baker McKenzie Washington, D.C. office.

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