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[Music] you're listening to the European parliamentary research service podcast on the EU customs Union the EU customs union is a unique example of an area where a number of countries apply a common set of rules for handling the import export and transit of goods the rules governing the system were updated by the Commission in May 2016 resulting in the new union customs code let's take a look at it the customs union is an essential part of the EU internal market and has been in place since 1968 it's managed by 28 national custom services acting as one this means that member states do not charge customs duties between each other but a common external tariff is imposed on goods from third countries entering the EU so a car produced in Japan or a mobile phone made in China or the u.s. can circulate freely inside the EU once they've been cleared by customs in one member state that's it nothing more to pay and no more checks the European Commission proposes the rules and monitors their implementation but it's the responsibility of the Member States to implement them via their national customs administrations vu has become the world's largest trading bloc in 2015 the value of the US trade with other countries amounted to 3 point 5 trillion euros this is 15 percent of global trade in goods and more than the total yearly retail sales in the EU so who are we trading with well the main trade partners are the US China Switzerland Russia and Turkey in 2016 over 310 million customs declarations were handled by more than 2000 EU customs officers working 24 hours a day 365 days a year so it never stops no it doesn't and it's getting increasingly complicated EU enlargement the growth of e-commerce the threat of terrorism and cross-border crime piracy and violation of intellectual property rights are all changing the nature of the business and forcing customs authorities to carry out non-fiscal tasks to guarantee the safety and security of European citizens these new challenges have forced the Commission to rethink the rules of the game and to strike the right balance between ensuring the smooth flow of trade and protecting internal secure to ensure security some 120,000 officials work for customs authorities across the EU in 2014 alone they seized more than 450 tons of drugs and in 2015 it was 7,000 weapons and more than 3 million items of ammunition in an effort to make the EU customs union fit to the new times the Commission proposed a new Union customs code which came into force in May 2016 the new code aims at making European businesses more competitive and creating more jobs and growth by streamlining and simplifying customs rules and procedures the idea is to offer greater legal certainty to businesses and increase clarity for customs officials the new customs code also aims at linking member states national systems through a single interface and completing the shift to fully electronic and interoperable customs environments through a centralized clearance system and the single customs office this will require the development of EU wide IT systems so by December 2020 all Member States will need to be technologically ready to support the electronic flow of customs data the new system is meant as a natural evolution towards a modern customs environment those results and benefits may only be grasped once it has been fully implemented by the end of 2020 but before that many challenges will need to be overcome stay with us one of the challenges is that not all member states share the same vision of how and when to use common custom systems although the rules are the same for all some countries want more flexibility to decide when they implement the shared customs rules or maintain national solutions further challenges relate to the structural and administrative changes the new customs code will introduce uncustomed policy monitoring formulation and implementation the new customs code also tackles administrative issues such as the application of EU laws competency building for customs officials the coordination of different policy areas and authorities involved in border management as well as the question of resources and financing European Poland has looked at the issue in many occasions and it is critical of the differences between custom systems at national level in particular regarding customs duties and customs clearance to mep x' these create fragmentation add red tape especially for small and medium-sized companies and hamper ecommerce so they suggest amongst other things stepping up efforts to create more uniform electronic customs requirements and risk assessment programs at EU level the parliament has also asked the Commission to present an evaluation of EU customs policy by 2017 including a review of problems overlaps and gaps complaints filed with customs authorities and infringement of the new Union customs code the Parliament also expects a fitness check by 2021 to ensure that the new EU customs policy including the new customs code is delivering the expected results both for Member States and for trade operators so we'll have to wait and see your last name to European parliamentary Research Service podcasts you [Music]