EU auditors find ‘weaknesses and loopholes’ in customs controls

EU auditors find ‘weaknesses and loopholes’ in customs controls
Custom Controls © Danny Howard CC BY 2.0

Important ‘weaknesses and loopholes’ indicate that EU customs controls are not being applied effectively, according to a new report from the European Court of Auditors.

This has an adverse effect on EU finances, the auditors add.

Goods entering EU member states from outside the European Union are subject to customs controls before they are released for free circulation within the EU. However, importers can deliberately reduce or evade customs duty liability by, for example, undervaluing their goods, declaring a false country of origin or shifting to a product classification with a lower duty rate.

Pietro Russo, the member of the European Court of Auditors responsible for the report, said: “Customs duties make up 14% of the EU budget, or about €20bn. Their evasion increases the customs gap and must be compensated by higher GNI contributions by member states.

“This cost is ultimately borne by European taxpayers.”

The auditors examined whether the European Commission and member states had designed robust controls on imports.

They visited the customs authorities of five member states: Spain, Italy, Poland, Romania and the United Kingdom.

They found serious weaknesses indicating that there are shortcomings in the legal framework, as well as ineffective implementation of customs controls on imports, which has adverse effects on the financial interests of the EU, the report says.

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