Brussels pushes simpler EU customs rules

Europe’s customs rules will be made simpler under new legislation to be unveiled on Wednesday by Brussels’ tax chief, Laszlo Kovacs.

A new customs code will oblige customs agencies throughout the EU to streamline and integrate their systems, allowing companies to contact any national agency through a single portal.

Europe's customs authorities will also be obliged to streamline their procedures and regulations to create a customs code common to all.

Businesses, meanwhile, will be obliged to make electronic customs declarations via a simplified online system.

But they will also be able to declare goods electronically and pay their taxes in the country in which they are based, regardless of where the goods are bought or used.

The European Commission claims that businesses will save up to €2.5 billion a year once the system is up and running from 2010.

But integrating existing systems will mean a big investment by the commission and national governments - €40-50 million a year until 2013, according to Kovacs.

A third option – to create a single pan-European customs system – was dismissed as too expensive and difficult to co-ordinate.

Easing customs restrictions on companies is viewed as a major step forward towards the creation of a single market for goods and services, a key commission goal.

The commission claims that small businesses in particular will benefit from the streamlined service, as it will significantly reduce the cost of multiple customs declarations.

Consumers should also benefit as cost savings are passed on via lower prices, Brussels believes.

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