Considerations on COM(2023)259 - Amendment of Regulations as regards the introduction of a simplified tariff treatment for the distance sales of goods and the elimination of the customs duty relief threshold

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dossier COM(2023)259 - Amendment of Regulations as regards the introduction of a simplified tariff treatment for the distance sales of goods and ...
document COM(2023)259
date May 17, 2023
 
(1) Chapter V of Council Regulation (EC) No 1186/20092 provides for the relief from import duties for goods sent directly from a third country to a consignee in the Union in consignments with a total intrinsic value not exceeding EUR 150. Until 1 July 2021, the import VAT was also exempted for the importation of goods with a value not exceeding EUR 22. The increase in the volume of low value imports following the explosive growth of e-commerce and the associated facilitations made it challenging for customs authorities to enforce compliance with fiscal and non-fiscal requirements. Therefore, Council Directive (EU) 2017/24553 eliminated the import VAT exemption for these low value goods to protect Member States' tax revenue, to create a level playing field for the businesses concerned and to minimise burdens on them.

(2) At the same time, the customs duty relief for goods below EUR 150 was maintained, leaving the door open for the systematic abuse of that threshold through undervaluing and artificially splitting consignments.

(3) In a digitalised customs environment where electronic data are available for all imported goods regardless of their value, maintaining a duty relief that was introduced to prevent the disproportionate administrative burden on customs authorities, businesses and private individuals is no longer justified. At the same time, considering the significant volumes of low value imports, it has become necessary to protect the financial interests of the Union and its Member States.

(4) It is therefore necessary to delete from Chapter V of Regulation (EC) No 1186/2009 the threshold, under which goods of negligible value not exceeding EUR 150 per consignment are exempted from customs duties at import.

(5) Nevertheless, calculating the applicable duty is a complex task based on the tariff classification, the customs value and the origin of the goods. Applying this method in e-commerce would often result in a disproportionate administrative burden both for customs and businesses. To avoid this, it is necessary to provide e-commerce intermediaries with the possibility to apply a simplified tariff treatment based on a five-tier bucket system, where each of the buckets is associated with a different duty rate in relation to goods sold to the final consumer. Goods having currently a 0% erga omnes duty rate will continue to benefit from zero duties.

(6) The bucketing system should take as a reference the existing conventional duty rates and should not take into account the originating status of the goods. However, if the importers wish to apply the conventional or lower applicable autonomous duty rates or benefit from preferential tariff rates by proving the originating status of the goods, they can do so by applying the standard procedures, since the use of the simplified tariff treatment is optional.

(7) Goods subject to harmonised excise duties and goods subject to anti-dumping, anti-subsidy and safeguard measures should be excluded from the simplified tariff treatment for distance sales of imported goods from third countries. Moreover, goods contained in Chapters 73, 98 and 99 of the Combined Nomenclature are also excluded because the importation of such goods (respectively iron and steel products, complete industrial plants and goods imported or exported under special circumstances) due to their nature should not benefit from any simplification.

(8) In accordance with the principle of proportionality as set out in Article 5 of the Treaty on European Union (TEU), this Regulation does not go beyond what is necessary to meet the objectives of the Treaties, in particular the smooth functioning of the customs union and the single market. Proportionality is ensured by the fact that this initiative eliminates the duty relief threshold for the importation of low value consignments into the EU and promotes a more effective and simpler approach for the collection of customs duties in relation to goods imported under distance sales.

(9) Regulations (EEC) No 2658/87 and (EC) No 1186/2009 should therefore be amended accordingly.