Nothing less than the future of world trade was the subject of discussion among participants at the 37th EFA Conference last Thursday and Friday in Dortmund. The European Forum for Foreign Trade (EFA, Europäisches Forum für Außenwirtschaft e.V.) had invited representatives from industry, academia, the customs administration, consultancy, and the EU Commission to the Dortmund Congress Centre to discuss issues of customs and foreign trade law. The first day of the conference was shaped by growing protectionism in global trade, a topic that often leaves companies, and individuals, feeling powerless.
It was all the more encouraging, then, that the presentations consistently offered a highly practical perspective on the state of European customs policy, in particular the reform of the Union Customs Code (UCC). Matthias Petschke, Director at DG TAXUD at the EU Commission, reported on the results of the legislative process to date. Participants gained a much clearer picture of individual elements of the reform, such as the Data Hub or the concept of the Trust and Check trader. Electronic trade in goods is expected to be processed, from July 2028, through the European customs database, the Data Hub, in order to allow for better monitoring. As soon as actual duties can be calculated for e-commerce goods via the Hub, the flat-rate charge of €3, introduced on 1 July 2026 (see the article in this newsletter), will be abolished again. Independently of this, a “handling fee” is to be introduced in the near future for parcels sent directly to consumers. This is intended to range between €2 and €5 and to offset the cost of the necessary controls in this area. Ludger Schließ, President of the Directorate General of Customs (GZD, Generalzolldirektion), gave an outlook on the implementation of the UCC reform within the national administration. The presentations and the ensuing discussion made clear that, going forward, particular reliance is being placed on the idea that a company holding Trust and Check trader status will be able to carry out customs procedures independently, but must, in return, grant customs authorities access to its internal company data systems. It became very clear, in the subsequent discussion with an industry representative, that businesses remain rather sceptical, based on experience with the reform process so far, as to whether the Trust and Check trader concept will deliver the anticipated benefits for industry.
Anyone who has ever dealt with the issue of transfer pricing within corporate groups, and its relevance for customs valuation, knows that there is often tension here between a company’s customs department and its tax department. The panel discussion devoted to this topic on the second day of the conference, made up of company representatives and a representative of the customs administration, revealed, among other things, two key insights:
- When a legally demanding topic is discussed by a group of experienced practitioners in a relaxed atmosphere, it loses its intimidating character.
- Where certain parameters are observed in the context of transfer pricing adjustments, with particular emphasis placed in this context on the determination of arm’s length prices, the views of the administration and of companies are, in fact, not far apart.
Finally, the conference turned to the topic of AI and digitalisation in customs and export control, illustrating, through impressive examples from academia and corporate practice, which processes can already be simplified using AI, and where challenges remain. It became clear that AI is helpful in many respects, but still has room for improvement, and that, in the end, it is still human experts who must carry out the necessary checks.
Our conclusion: the wealth of expert insight gained from the presentations, the conversations during the breaks, and, not least, the wonderful evening event at Signal Iduna Park, including a stadium tour, all point to only one conclusion: we will be there again next year, and we are happy to contribute, once more, coffee and coffee-cup sponsorship, so that all participants can attentively follow what is sure to be another exciting conference programme!
