EU Customs: UCC Digital Evolution

UCC milestones in 2023 brought us closer to full digital customs integration. How will it impact professionals?

What Questions We Will Answer in this Blog

What were the key UCC system projects completed by 2023?
What challenges and successes emerged from the ongoing 2024 UCC systems?
How can customs professionals prepare for full UCC implementation in 2025?

Introduction

The modernisation of customs processes under the Union Customs Code (UCC) represents a monumental shift for customs professionals across the EU. We’re nearing 2025, the target year for full UCC implementation, and the European Commission’s 2023 progress report from September 2024 highlights significant advancements in digital customs systems.

"As we edge closer to 2025, the UCC’s full implementation will ensure a more streamlined, secure, and efficient customs environment—driving global trade forward while safeguarding the EU’s borders."— Arne Mielken, Managing Director of Customs Manager Ltd

Abbreviations We Use in this Blog

To make this blog easy to navigate, I will define any abbreviations we use here:

UCC – Union Customs Code
REX – Registered Exporter System
BTI – Binding Tariff Information
AEO – Authorised Economic Operator
ICS2 – Import Control System 2
GUM – Guarantee Management System
NCTS – New Computerised Transit System

What were the key UCC system projects completed by 2023?

Since the UCC’s implementation in 2016, several critical projects have laid the foundation for the EU's digital customs landscape. By 2023, numerous systems were up and running, ensuring smoother processes for customs agents, export control experts, and trade professionals.

Completed Systems Before 2023:

REX (Registered Exporter System): Simplified certification, making it easier for customs agents and authorities to manage exporters.
Customs Decisions: This centralized system allowed traders to electronically submit and track customs applications, improving the flow of decisions.
EORI2 (Economic Operator Registration and Identification): Provided consistent identifiers for economic operators, ensuring smooth customs clearance.
BTI (Binding Tariff Information): Delivered legal certainty for the classification of goods, ensuring correct tariff application.
AEO (Authorised Economic Operator) Upgrade: Enhanced mutual recognition of customs statuses for trusted traders, reinforcing security and efficiency.
ICS2 (Import Control System 2), Release 1: Focused on bolstering risk management for goods entering the EU, especially air cargo.

These systems improved customs clearance efficiency, reduced administrative burdens, and enhanced collaboration across Member States.

What challenges and successes emerged from the ongoing 2023UCC systems?

In 2024, the European Commission’s report acknowledged several ongoing projects nearing completion, set to revolutionize how import and export operations are conducted.

Completed by 2023’s End

Notification of Arrival, Presentation Notification, Temporary Storage (AN, PN, TS): This trio of systems is streamlining customs clearance by digitizing and connecting critical steps in the goods entry process.
National Import Systems (NIS) Upgrade: Harmonized import systems across the EU Member States, ensuring consistency for customs professionals.
ICS2, Release 2: Expanded the system’s risk management capabilities, improving the security of goods entering by land, sea, and air.
Centralised Clearance for Import (CCI) – Phase 1: Allowed goods to be cleared in a single Member State, even if destined for multiple countries.

Challenges Identified

Teamwork, financial planning, and realistic project scoping emerged as critical issues, with the report emphasizing the importance of collaboration between Member States, customs agents, and the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD). The demand for more frequent updates and additional training was also noted as essential to ensure a smooth rollout of remaining systems.

How can customs professionals prepare for full UCC implementation in 2025?

Ongoing Projects in 2024:

Guarantee Management (GUM): This system will provide full digital management of customs guarantees, ensuring compliance with procedures.
ICS2, Release 3: Expected to further enhance risk management by covering goods entering via air, land, and sea.
Proof of Union Status (POUS): This digital solution will streamline procedures for intra-EU trade by proving the Union status of goods electronically.
Centralised Clearance for Import (CCI) – Phase 2: This will extend the reach of centralized clearance, further easing customs processes.
NCTS Upgrade – Component 2: Will enhance the transit of goods under customs control, boosting trade flow across Member States.

The road to full UCC implementation has been long, but with the 2025 deadline in sight, customs professionals need to stay ahead of the game. These new systems mean more streamlined procedures, but they also require adaptation and risk awareness.

Arne’s Takeaway

The UCC’s journey toward full implementation is a testament to the EU’s commitment to fostering a safer, more efficient customs landscape. As we approach 2025, customs agents and professionals need to familiarize themselves with these systems and prepare for the remaining projects.

Expert Recommendations

Familiarize yourself with new systems like GUM and POUS to ensure compliance with updated UCC procedures.
Invest in training for your team on ICS2 and NCTS upgrades to optimize your risk management processes.
Stay informed by subscribing to regular updates on UCC system implementations and changes in customs legislation.

How My Team and I Can Help

Along with my team of dedicated professionals, we provide extensive support for UCC implementation and customs operations. Whether it’s consultancy or hands-on assistance, we offer public and private training tailored to importers, exporters, and customs professionals. Our services include practical UK customs clearance support and in-depth weekly intelligence updates for members. For more, visit www.customsmanager.org.

Sources We Base Our Information On

This blog is based on the official European Commission progress report from September 2024 and our deep expertise in customs legislation. In particular:

Report from the Commission to the European Parliament and the Council of the Union Customs Code on progress in developing the electronic systems provided for under the Code during 2023
COMMISSION STAFF WORKING DOCUMENT Accompanying the REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL pursuant to Article 278(a) of the Union Customs Code, on progress in developing the electronic systems provided for under the Code during 2023

Where To Find More Information on UCC

To delve deeper into UCC systems and updates:

Subscribe to The Customs Watch – our weekly roundup of customs law and policy updates.
Visit our Knowledge Hub for comprehensive content at www.customsmanager.info.

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Join us for extensive training on UCC and related topics. Explore our course offerings at www.customsmanager.org/events.

About the Author

Arne Mielken is a customs, export control, and sanctions expert with over 20 years of experience. A Freeman of the City of London, he has held senior roles in Big 4 consultancy firms and global trade organizations. He is a member of multiple industry bodies, including the Customs Practitioners Group and ODASCE.

Connect With Me & My Team Connect with me on LinkedIn, or visit our London office for a chat and live training.

Disclaimer This blog is for educational purposes and should not be interpreted as legal advice.

EU Customs: UCC Digital Evolution - 2023 and Beyond