According to reports, the EU is undergoing a large-scale reform of its customs system aimed at improving management efficiency, achieving real-time supply chain tracking, and increasing fiscal revenue. According to the latest report, the planned reform measures include the establishment of customs authorities within Europe and the cancellation of the previous € 150 tax exemption limit. So far, goods below this value have not been declared for import. However, canceling the tax exemption limit will also require goods with significantly lower future value to be declared through customs, bringing up to 750 million euros in additional revenue to the EU annually, directly flowing into the EU budget. The primary goal of this reform is to centrally manage the entire European customs system. By establishing a new EU wide customs department, the EU will be able to achieve the goal of real-time mapping of all supply chains. It is expected that by 2028, the new institution will be officially established to ensure the smooth progress of the reform process.
This week, specific reform plans will be announced, including the responsibilities and suppliers of the new customs authorities, as well as whether to set new import exemption limits. This will be the second major change in import trade in the near future. Less than two years ago, the 22 euro import sales tax exemption limit had been lowered, leading to the imposition of taxes on low-priced goods. This change puts EU traders in a more advantageous position when competing with low-priced Asian suppliers. However, so far, these changes have not had a significant impact. In addition, as low-cost e-commerce platforms such as Temu enter the local market and are not subject to tax or customs restrictions, the EU is closely monitoring.
Post time: May-17-2023