(1)

The Customs 2020 programme set up under Regulation (EU) No 1294/2013 (18) and its predecessors have significantly contributed to facilitating and enhancing customs cooperation. Many of the activities in the customs area are of a cross-border nature, involving and affecting all Member States, and therefore they cannot be effectively and efficiently delivered by individual Member States. A customs programme at Union level, implemented by the Commission , offers Member States a  Union framework to develop those cooperation activities, which is more cost-efficient than if each Member State were to set up individual cooperation frameworks on a bilateral or multilateral basis . It is therefore appropriate to ensure the continuity of Union financing of activities in the field of customs cooperation by establishing a new programme in the same area , the Customs programme.

(1)

The Customs 2020 programme , established by Regulation (EU) No 1294/2013 (18) and its predecessors have contributed significantly to facilitating and strengthening customs cooperation. Many of the customs activities are of a cross-border nature, involving and affecting all Member States and therefore cannot be effectively and efficiently implemented by each Member State alone. A Union-wide customs programme implemented by the Commission provides Member States with a framework at Union level to develop such cooperative activities, which is more cost-effective than if each Member State set up an individual cooperation framework at bilateral or multilateral level. The customs programme also plays an essential role in safeguarding the financial interests of the Union and of the Member States by ensuring the effective collection of customs duties and thus representing an important source of revenue for the Union and national budgets, also by focusing on IT capacity building and increased cooperation in the field of customs. Furthermore, harmonised and standardised controls are necessary in order to track illegal cross-border flows of goods and fight fraud . It is therefore appropriate and in the interest of efficiency to ensure the continuity of the Union's financing activities in the field of customs cooperation by establishing a new programme in the same field , the ‘Customs’ programme (‘the Programme’).

(1a)

For 50 years, the customs union, implemented by national customs authorities, has been a cornerstone of the Union, one of the largest trading blocks in the world. The customs union is a significant example of successful Union integration, and is essential for the proper functioning of the single market for the benefit of both businesses and citizens. The European Parliament, in its resolution adopted on 14 March 2018, entitled ‘The next MFF: Preparing the Parliament’s position on the MFF post-2020’, expressed particular concern regarding customs fraud. A stronger and a more ambitious Union can only be achieved if it is provided with reinforced financial means, continuous support for existing policies, and increased resources.

(2)

The customs union has evolved considerably over the last fifty years and customs administrations now successfully perform a wide variety of tasks at borders . Acting together, they work to facilitate trade and reduce red tape , collect revenues for national and Union budgets and protect the public against terrorist, health, environmental and other threats. In particular, with the introduction of an EU-wide Common Risk Management Framework  (19) and customs control of movements of large amounts of cash to combat money laundering and terrorist financing, customs assume a front line position in the fight against terrorism and organised crime. Given that broad mandate, customs is now effectively the lead authority for the control of goods at the Union’s external borders. Against that backdrop , the Customs programme should not only cover customs cooperation but extend its support to the mission of customs authorities at large, as set out in Article 3 of Regulation (EU) No 952/2013, i.e. the supervision of the Union's international trade, the implementation of the external aspects of the internal market, of the common trade policy and of the other common Union policies having a bearing on trade , as well as the security of the supply chain. The legal basis will therefore cover customs cooperation (Article 33 TFEU), internal market (Article 114 TFEU) and commercial policy (Article 207 TFEU).

(2)

The customs union has evolved considerably over the last 50 years, and customs administrations are now successfully fulfilling a wide range of border tasks. Working together, they strive to facilitate ethical and fair trade and reduce bureaucracy , collect revenue for national and Union budgets, and help to protect the population against terrorist, health a nd environmental threats, as well as other threats. In particular, by introducing a common framework  (19) for customs risk management at Union level and by controlling large amounts of cash flows to combat money laundering and terrorist financing, the customs authorities take a leading role in the fight against terrorism, organised crime and unfair competition. Given their extensive mandate, the customs authorities are now in reality the main authorities for the control of goods at the Union's external borders. In this context , the Customs programme should not only cover customs cooperation but also provide support for the wider customs mission as provided for in Article 3 of Regulation (EU) No 952/2013, namely the supervision of the Union's international trade, the implementation of the external aspects of the internal market, the common commercial policy and other Union common policies having an influence on trade and the security of the supply chain. The legal basis of this Regulation should therefore cover customs cooperation (Article 33 TFEU), the internal market (Article 114 TFEU) and commercial policy (Article 207 TFEU).

(3)

In providing a framework for actions that has as objective to support the customs union and customs authorities , the Programme should contribute to protecting the financial and economic interests of the Union and its Member States; protecting the Union from unfair and illegal trade while supporting legitimate business activity; ensuring the security and safety of the Union and its residents; and facilitating legitimate trade, so that businesses and citizens can benefit from the full potential of the internal market and of global trade.

(3)

The Programme should, as a general objective, assist the Member States and the Commission by providing a framework for actions that aims to support the customs union and customs authorities with the long-term objective that all customs administrations in the Union work together as closely as possible; contribute to protecting the financial and economic interests of the Union and its Member States; protect the Union from unfair and unlawful commercial practices, while encouraging legitimate business activities, guaranteeing the security and safety of the Union and its residents , thereby enhancing consumer protection ; and facilitate legitimate trade so that businesses and citizens can benefit from the full potential of the internal market and world trade.

(3a)

As it has become evident that some of the systems referred to in Article 278 of the Union Customs Code can only be partially deployed by 31 December 2020, which implies that non-electronic systems will continue in use beyond that date, and in the absence of legislative amendments that extend that deadline, companies and customs authorities will be unable to perform their duties and legal obligations as regards customs operations, one of the primary specific objectives of the Programme should be to assist the Member States and the Commission to set up such electronic systems.

(3b)

Customs management and control is a dynamic policy area, facing new challenges generated by constantly evolving global business models and supply chains, as well as changing consumption patterns and digitalisation, such as e-commerce, including the internet of things, data analytics, artificial intelligence and block chain technology. The Programme should support customs management in such situations and enable the use of innovative solutions. Such challenges further underline the need to enforce cooperation between customs authorities and the need for a uniform interpretation and implementation of the customs legislation. When public finances are under pressure, the volume of world trade increases and fraud and smuggling are a growing concern; the Programme should contribute to tackling those challenges.

(3c)

In order to ensure maximum efficiency and to avoid overlaps, the Commission should coordinate the implementation of the Programme with related Union programmes and funds. This includes in particular the Fiscalis Programme, the EU anti-fraud Programme and Single Market Programme, as well as with the Internal Security Fund and Integrated Border Management Fund, the Reform Support Programme, the Digital Europe Programme, the Connecting Europe Facility and the Council Decision on the system of Own Resources of the European Union, as well as the implementing regulations and measures.

(3d)

With regard to the potential withdrawal of the United Kingdom from the Union, the financial envelope of the Programme does not take into account the costs resulting from the signing of the withdrawal agreement and the potential future relationship between the United Kingdom and the Union. The signing of that agreement, the disengagement of the United Kingdom from all existing customs systems and cooperation, and the lapsing of its legal obligations in this area, could lead to additional costs, which cannot be precisely estimated at the time of establishment of the Programme. The Commission should therefore consider reserving sufficient resources to prepare for those potential costs. However, those costs should not be covered by the envelope of the Programme, as the budget provided for in the Programme will only be sufficient to cover the costs which could realistically be foreseen at the time of establishment of the Programme.

(5)

In order to support the process of accession and association by third countries, the Programme should be open to the participation of acceding and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy if certain conditions are fulfilled . It may also be open to other third countries , in accordance with the conditions laid down in specific agreements between the Union and those countries covering their participation to any Union programme.

(5)

In order to support the process of accession and association of third countries, the Programme should be open to the participation of acceding and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy, if all conditions are met . It may also be open to other third countries under the conditions provided for in specific agreements between the Union and the countries concerned on the participation of those countries in any Union programme , if that participation is of interest to the Union and if it has a positive impact on the internal market without affecting consumer protection .

(6)

Regulation (EU, Euratom) [2018/XXX] of the European Parliament and of the Council (21) (the ‘Financial Regulation’) applies to this Programme. It lays down rules on the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursement of external experts.

(6)

The Programme should be covered by Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (21) (hereinafter referred to as ‘the Financial Regulation’) . The Financial Regulation provides for the rules for the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursement of external experts.

(7)

The actions which applied under the Customs 2020 programme have proven to be adequate and should therefore be maintained. In order to provide more simplicity and flexibility in the execution of the Programme and thereby better deliver on its objectives, the actions should be defined only in terms of overall categories with a list of illustrative examples of concrete activities. Through cooperation and capacity building, the Customs programme should also promote and support the uptake and leverage of innovation to further improve the capabilities to deliver on the core priorities of customs.

(7)

The actions which applied under the Customs 2020 programme and have proven to be adequate should therefore be maintained , while others that have proven to be inadequate should be terminated . In order to provide greater simplicity and flexibility in the execution of the Programme and thereby better deliver on its objectives, the actions should be defined only in terms of overall categories with a list of illustrative examples of concrete activities. Through cooperation and capacity building, the Programme should also promote and support the uptake and leverage of innovation to further improve the capabilities to deliver on the core priorities of customs.

(8)

Regulation [2018/XXX] establishes, as part of the Integrated Border Management Fund, a Customs Control Equipment Instrument (22) (‘CCE Instrument’). In order to preserve the coherence and horizontal coordination of all cooperation actions relating to customs and customs control equipment, it is appropriate to implement all of them under one single legal act and set of rules, being this Regulation. Therefore, the CCE Instrument should only support the purchase, maintenance and upgrade of the eligible equipment while this Programme should support all other related actions, such as cooperation actions for the assessment of equipment needs or, where appropriate, training in relation to the equipment purchased.

(8)

Regulation [2018/XXX] establishes, as part of the Integrated Border Management Fund, a Customs Control Equipment Instrument (22) (‘CCE Instrument’). In order to preserve the coherence and horizontal coordination of all cooperation actions relating to customs and customs control equipment, it is appropriate to implement all of them under one single legal act and set of rules, that act and those rules being this Regulation. Therefore, the CCE Instrument should only support the purchase, maintenance and upgrade of the eligible equipment, while this Programme should support all other related actions, such as cooperation actions for the assessment of equipment needs or, where appropriate, training in relation to the equipment purchased.

(10)

Considering the importance of globalisation, the Programme should continue to provide the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. Those external experts should mainly be representatives of governmental authorities, including from non-associated third countries, as well as representatives of international organisations, economic operators or civil society.

(10)

Considering the importance of globalisation, the Programme should continue to provide for the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. Those external experts should mainly be representatives of governmental authorities, including from non-associated third countries, as well as academics and representatives of international organisations, economic operators or civil society.

(11)

In line with the Commission's commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 19 October 2010 entitled ‘The EU Budget Review’ (23), resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives that are common to various funding instruments, excluding however double financing. Actions under the Programme should ensure coherence in the use of the Union's resources supporting the customs union and customs authorities.

(11)

In line with the Commission's commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 19 October 2010 entitled 'The EU Budget Review (23), resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives that are common to various funding instruments , taking into account that the amount allocated to the Programme is calculated without taking into account that there could be unforeseen expenses , excluding however double financing. Actions under the Programme should ensure coherence in the use of the Union's resources supporting the customs union and customs authorities.

(11 a)

The purchase of software that is needed to perform tight border controls should be eligible for funding under the Programme. Furthermore, the purchase of software that can be used in all Member States should be encouraged in order to facilitate exchange of data.

(12)

Information Technology (IT) capacity building actions are set to attract the greatest part of the budget under the Programme. Specific provisions should describe, respectively, the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and the Member States should be clearly defined.

(12)

Information Technology (IT) capacity building actions are set to attract a greater part of the budget under the Programme. Specific provisions should describe, respectively, the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and the Member States should be clearly defined. In order to ensure coherence and coordination of IT capacity-building actions, the Programme should provide that the Commission develops and updates a Multiannual Strategic Customs Plan (‘MASP-C’), with the aim of creating an electronic environment which ensures consistency and interoperability of the customs systems in the Union.

(14a)

In line with the findings contained on the two special reports adopted recently by the European Court of Auditors in the field of customs, namely special report No 19/2017 of 5 December 2017 entitled ‘Import procedures: shortcomings in the legal framework and an ineffective implementation impact the financial interests of the EU’, and special report No 26/2018 of 10 October 2018 entitled ‘A series of delays in Customs IT systems: what went wrong?’, the actions undertaken within the ‘Customs’ programme for cooperation in the field of customs should aim at tackling the shortcomings signalled.

(14b)

On 4 October 2018 the European Parliament adopted a resolution on the fight against customs fraud and the protection of the Union’s own resources. The conclusions contained in that resolution should be taken into account during the actions implemented in the framework of the Programme.

(20)

The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation.

(20)

The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver the best results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation.

(1)

to support the preparation and uniform implementation of customs legislation and policy as well as customs cooperation;

(2)

to assist with IT capacity building, which consists in developing, maintaining and operating the electronic systems as referred to in Article 278 of the Union Customs Code, and enabling a smooth transition to a paperless environment and trade in line with Article 12 of this Regulation ;

(3)

to finance joint actions, which consist in cooperation mechanisms enabling officials to carry out joint operational activities under their core responsibilities, share experience in the customs field and join efforts to deliver on customs policy;

(4)

to enhance human competencies, supporting the professional skills of customs officials and empowering them to fulfil their role on a uniform basis;

(5)

to support innovation in the area of customs policy.

(c)

other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement:

(c)

other third countries, under the conditions laid down in a specific agreement on the participation of a third country in any Union programme, provided that the agreement:

—

lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues in accordance with Article [21(5)] of Regulation [2018/XXX] [ the new Financial Regulation];

—

establishes the conditions for participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenue in accordance with Article 21(5) of the Financial Regulation;

(b)

project-based structured collaboration;

(b)

project-based structured collaboration , such as collaborative IT development by a group of Member States ;

(d)

human competency and capacity building actions;

(d)

human competency and capacity building actions , including training and exchange of best practices ;

(3a)

(b)

the overall coordination of the development and operation of European electronic systems with a view to their operability, inter connectivity and continuous improvement and their synchronised implementation;

(b)

the overall coordination of the development and operation of European electronic systems with a view to their operability, cyber-resilience, interconnectivity and continuous improvement and their synchronised implementation;

(ea)

an efficient and swift communication with and between Member States with a view to streamlining the governance of the Union’s electronic systems;

(eb)

a timely and transparent communication with the stakeholders concerned with the implementation of IT systems at Union and Member States level, in particular about delays in the implementation of and spending relating to Union and national components.

(d)

the regular provision to the Commission of information regarding the measures taken to enable their respective authorities or economic operators to make full use of European electronic systems;

(d)

providing the Commission with regular information on the measures taken to enable the authorities or economic operators concerned to make full and effective use of the European electronic systems;

(a)

a common component: a component of the European electronic systems developed at Union level, which is available for all Member States or identified as common by the Commission for reasons of efficiency, security and rationalisation;

a)

a common component: a component of European electronic systems developed at Union level, which is available to all Member States or identified by the Commission as being common for reasons of efficiency, security of rationalisation and reliability ;

(b)

a national component: a component of the European electronic systems developed at national level, which is available in the Member State that created such a component or contributed to its joint creation;

(b)

a national component: a component of the European electronic systems developed at national level, which is available in the Member State that created such a component or contributed to its joint creation , for instance as part of a collaborative IT development project by a group of Member States ;