On September 9, 2024, the European Commission adopted the Union Customs Code (UCC) Annual Progress Report 2023. This fifth edition details advancements in implementing the UCC and its 17 key digital projects, drawing on input from EU Member States throughout 2023. The report has been shared with the European Council and Parliament.
Progress in Digitalisation
Since the UCC came into effect on May 1, 2016, the EU and Member States have been working to fully digitalize customs operations. Electronic systems are being developed for communication between businesses and customs authorities, as well as among customs authorities themselves. This digital transformation aims to protect the EU’s financial interests, address safety and security risks, and streamline customs clearance.
The UCC introduces several trade simplifications, including centralised clearance, entry into the declarant’s records, a harmonised trader portal, and improved standardisation across EU customs processes. These measures promise significant benefits for businesses engaged in customs operations.
Key Findings of the 2023 Report
The report assesses progress in the 17 digital projects outlined in the UCC Work Programme, categorising them into central systems, trans-European systems, and national systems.
Central Systems
- Import Control System 2 (ICS2) Release 2 was successfully deployed on March 1, 2023, with a trader deployment window extending until October 2023. By year-end, 26 Member States were operational.
- Proof of Union Status (PoUS) Phase 1 and Guarantee Management (GUM) projects also made significant progress, with deployment planned for 2024.
Trans-European Systems
- New Computerised Transit System (NCTS) and Automated Export System (AES) faced delays, missing their initial deadline of December 1, 2023. Revised plans now target full deployment by December 2, 2024, with phased rollouts starting from the original deadline.
- Centralised Clearance for Import (CCI) showed steady progress but required a revised timeline, prioritizing standard declarations and flexible messaging. Full implementation is now expected by June 2025.
National Systems
- Three national projects originally scheduled for completion by December 31, 2022, faced delays. As a result, 22 Member States were granted extensions until December 31, 2023. By the end of 2023, most had completed their implementations, notably the National Import Systems (NIS).
Challenges and Recommendations
Despite progress, challenges persist. Several Member States reported difficulties meeting deadlines due to resource constraints, management issues, and external factors such as the COVID-19 pandemic, the war in Ukraine, Brexit, and the implementation of VAT eCommerce rules. According to the report, while 60% of Member States are on track, 10-15% face significant challenges.
The European Commission has urged Member States to reassess their strategies, resources, and governance to prevent further delays. In parallel, the Commission has stepped up its support through various initiatives to help Member States stay on track.