Customs Undervaluation Through the Prism of the Proposed Reform of the EU Customs Code

Customs undervaluation poses a persistent challenge within the European Union (EU), prompting actions at both EU and national levels. With customs duties being a key revenue source, the EU Commission has a vested interest in combatting undervaluation. Recent proposals to reform the Union Customs Code aim to address this issue, focusing on three main solutions. Firstly, the abolition of the €150 de minimis threshold aims to eliminate abuse of low-value consignments. Secondly, a simplified tariff and value treatment are proposed to streamline import formalities. Lastly, the creation of a European Union Customs Authority and an EU Customs Data Hub seeks to enhance risk analysis and coordination among Member States. However, the effectiveness of these solutions remains uncertain. The effect of abolishing the minimum threshold is doubtful. Similarly, the scope and cost of the proposed simplification may limit its impact. Nonetheless, the establishment of an EU Customs Authority and data hub represents a significant step forward. By facilitating data sharing and analysis, these initiatives have the potential to improve risk assessment and enforcement across the EU, aiding Member States in accurately levying customs duties.