20 Customs
| (34197)
13265/12
COM(12) 464
| Amended draft Regulation establishing an action programme for customs in the European Union for the period 2014-2020 (Customs 2020) and repealing Decision No. 624/207/EC
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| Legal base | Article 33 TFEU; co-decision; QMV
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| Department | HM Revenue and Customs
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| Basis of consideration
| Minister's letter of 26 November 2013
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| Previous Committee Reports
| HC 86-xiii (2012-13), chapter 12 (17 October 2012), HC 86-xx (2012-13), chapter 12 (21 November 2012), HC 86-xxii (2012-13), chapter 12 (5 December 2012) and HC 86-xxxvii (2012-13), chapter 4 (26 March 2013)
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| Discussion in Council
| 5 December 2013 |
| Committee's assessment
| Legally and politically important
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| Committee's decision
| Cleared |
Background
20.1 The Customs 2013 Programme is an EU action programme,
which provides funding for customs activities which support the
effective functioning of the single market and fall within the
exclusive competence of the EU. The Fiscalis 2013 Programme is
an EU funded programme which is designed to improve the operation
of taxation administration systems in the single market, through
strengthened administrative cooperation between Member States
and candidate countries, their administrations and officials.
Both programmes end on 31 December. In November 2011 the Commission
proposed creation of a successor to the Customs 2013 and Fiscalis
2013 programmes, by merging both into a single successor programme,
'FISCUS', which would run from 2014 to 2020. Following a decision
of the Council and the European Parliament that there should be
two separate legal instruments, the Commission withdrew its original
proposal and replaced it with two amended draft Regulations.
20.2 This draft Regulation is to create a Customs
2020 programme, the purpose of which is to contribute to the Europe
2020 Strategy for smart, sustainable and inclusive growth, by
strengthening the functioning of the EU's single market and its
customs union. The budget proposed by the Commission for the
seven-year period would represent a 45% increase on the Customs
2013 programme.
20.3 In December 2012 we gave a waiver, in accordance
with paragraph (3)(b) of the Scrutiny Reserve Resolution, allowing
the Government to support a Council partial general approach on
the draft Regulation, which clarified (the important point) that
participation in programme activities would be voluntary. Held
over from the general approach was a decision on financing of
Customs 2020 pending agreement on the Multiannual Financial Framework
(MFF) for 2014-20. Meanwhile the document continued under scrutiny.[59]
The Minister's letter 26 November 2013
20.4 The Economic Secretary to the Treasury (Nicky
Morgan) tells us that since December 2012 the Council partial
general approach has been considered in trilogue discussions and
the European Parliament looked favourably on the text, only proposing
minor amendments, which are acceptable to the Government and
also to the Council and the Commission.
20.5 The Minister continues that:
· the trilogue discussions
did not cover the budget for the programme;
· the Lithuanian Presidency
has announced that given adoption of the MFF it is, along with
the Commission, starting to push ahead with files that are on
hold, pending the outcome of these negotiations;
· for Customs 2020 the
Commission is now proposing a 38% increase to the programme budget
to €523 million (£436 million) over seven years, a
5% reduction from the Commission's original proposal;
· while this latest
figure is an increase from the Customs 2013 budget, the Commission
must ensure that the overall budget for all its programmes is
aligned with the MFF, with there being increases in some programme
budgets and reductions in others;
· the current text is
a good outcome for the UK;
· the Government was
able to secure clarification on the voluntary nature of the programme
and its activities, including participation in expert teams (which
could deliver customs services across the EU); and
· it was able also to
block a proposal from eastern Member States for the new programme
to include the funding of customs detection equipment (for example
scanners), which would have created a new cost pressure and extended
the remit of the programme into customs law enforcement (a shared
competence).
20.6 The Minister says that the Lithuanian Presidency
plans to send the proposal to the Council on 5 December for final
approval and that the Government would like to support the proposal,
in favour of which all other Member States are expected to vote.
Conclusion
20.7 We are grateful to the Minister for this
account of where matters stand on this draft Regulation and now
clear the document.
59 See headnote. Back
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