(1)

The Customs 2020 programme set up under , established by Regulation (EU) No 1294/2013 (3) and its predecessors have contributed significantly contributed to facilitating and enhancing strengthening customs cooperation. Many of the customs 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 implemented by each Member States. A State alone. A Union-wide customs programme at Union level, implemented by the Commission, offers provides Member States with a Union framework at Union level to develop those cooperation such cooperative activities, which is more cost-efficient cost-effective than if each Member State were to set up an individual cooperation frameworks on a framework at bilateral or multilateral basis 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 Union the Union's financing of activities in the field of customs cooperation by establishing a new programme in the same area field , the ‘Customs’ programme (‘the Programme’) . [Am. 1]

(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. [Am. 2]

(2)

The customs union has evolved considerably over the last fifty 50 years and customs administrations are now successfully perform fulfilling a wide variety of range of border tasks at borders. Acting Working together, they work strive to facilitate ethical and fair trade and reduce red tape bureaucracy , collect revenues revenue for national and Union budgets, and help to protect the public population against terrorist, health, and environmental and threats, as well as other threats. In particular, with the introduction of an EU-wide by introducing a common Risk Management Framework (4) and framework  (5) for customs control of movements of risk management at Union level and by controlling large amounts of cash flows to combat money laundering and terrorist financing, the customs assume a front line position authorities take a leading role in the fight against terrorism and organised crime and unfair competition. Given that broad their extensive mandate, the customs is now effectively the lead authority authorities are now in reality the main authorities for the control of goods at the Union’s external borders. Against that backdrop In this context , the Customs programme should not only cover customs cooperation but extend its also provide support to the mission of for the wider customs authorities at large, as set out mission as provided for in Article 3 of Regulation (EU) No 952/2013, i.e. the supervision namely the supervision of the Union's international trade, the implementation of the external aspects of the internal market, of the common commercial trade policy and of the other Union common Union policies having a bearing on an influence on trade, as well as and the security of the supply chain. The legal basis will of this Regulation should therefore cover customs cooperation (Article 33 TFEU), the internal market (Article 114 TFEU) and commercial policy (Article 207 TFEU). [Am. 3]

(3)

In The Programme should, as a general objective, assist the Member States and the Commission by providing a framework for actions that has as objective aims to support the customs union and customs authorities, the Programme should 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; protecting protect the Union from unfair and illegal trade unlawful commercial practices, while supporting encouraging legitimate business activity; ensuring activities, guaranteeing the security and safety of the Union and its residents; , thereby enhancing consumer protection and facilitating facilitate legitimate trade, so that businesses and citizens can benefit from the full potential of the internal market and of global world trade. [Am. 4]

(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. [Am. 5]

(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. [Am. 6]

(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. [Am. 7]

(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. [Am. 8]

(4)

This Regulation lays down a financial envelope for the Programme, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (6), for the European Parliament and the Council during the annual budgetary procedure.

(5)

In order to support the process of accession and association by 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 certain all conditions are fulfilled met . It may also be open to other third countries, in accordance with under the conditions laid down provided for in specific agreements between the Union and those the countries covering their concerned on the participation to 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 . [Am. 9]

(6)

The Programme should be covered by Regulation (EU, Euratom) [2018/XXX] 2018/1046 of the European Parliament and of the Council (7) ( hereinafter referred to as the ‘Financial Regulation’) applies to this Programme. It lays down . The Financial Regulation provides for the rules on for the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursement of external experts. [Am. 10]

(7)

The actions which applied under the Customs 2020 programme and have proven to be adequate and should therefore be maintained , while others that have proven to be inadequate should be terminated . In order to provide more 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 Customs programme 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. [Am. 11]

(8)

Regulation [2018/XXX] establishes, as part of the Integrated Border Management Fund, a Customs Control Equipment Instrument (8) (‘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. [Am. 12]

(9)

Exchanges of customs and related information are key for a proper functioning of customs and they extend well beyond the exchanges within the customs union. Adaptations or extensions of European electronic systems to third countries not associated to the Programme and international organisations could indeed have an interest for the Union or the Member States. Therefore, when duly justified by such an interest, adaptations of or extensions to European electronic systems for cooperation with third countries and international organisations should be eligible costs under the Programme.

(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. [Am. 13]

(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 (9)’, 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. [Am. 14]

(11a)

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. [Am. 15]

(12)

Information Technology (IT) capacity building actions are set to attract the greatest 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. [Am. 16]

(13)

Decision No 70/2008/EC of the European Parliament and of the Council (10) requests the Commission to draw up a Multi-Annual Strategic Plan for Customs for creating a coherent and interoperable electronic customs environment for the Union. The development and operation of the electronic systems included in the Multi-Annual Strategic Plan are mainly funded by the Programme. In order to ensure coherence and coordination between the Programme and the Multi-Annual Strategic Plan, the relevant provisions of the Decision should be included in this Regulation. As all relevant provisions of Decision No 70/2008/EC are now taken over either by Regulation (EU) No 952/2013 or by this Regulation, Decision No 70/2008/EC should be repealed.

(14)

This Regulation The Commission should be implemented by means of adopt work programmes for the purposes of this Regulation . In view of the mid- to long-term nature of the objectives pursued and building on experience gained over time, work programmes should be able to cover several years. The shift from annual to multiannual work programmes will reduce the administrative burden for both the Commission and Member States. [Am. 62]

(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. [Am. 17]

(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. [Am. 18]

(15)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred to the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (11). [Am. 63]

(16)

Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 (12), there is a need to evaluate this programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Instrument on the ground.

(17)

In order to respond appropriately to changes in policy priorities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the list of indicators to measure the achievement of the specific objectives of the Programme , in respect of establishing and updating the Multi-Annual Strategic Plan for the customs field and in respect of the establishment of the multiannual work programmes . It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (13). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 64]

(18)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (14), Council Regulation (Euratom, EC) No 2988/95 (15), Council Regulation (Euratom, EC) No 2185/96 (16) and Council Regulation (EU) 2017/1939 (17), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (18). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(19)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(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. [Am. 19]

(21)

Since the objective of this Regulation cannot be sufficiently achieved by the individual Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity, as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(22)

This Regulation replaces Regulation (EU) No 1294/2013 of the European Parliament and of the Council, which should therefore be repealed,