- The EU’s simplified import customs procedures, including “release for free circulation” and the “import one stop shop,” are intended to facilitate trade but have significant gaps that fail to prevent VAT fraud on imported goods.
- An audit by the European Court of Auditors revealed inconsistencies in the regulatory framework and highlighted serious weaknesses in member states’ enforcement of VAT collection, largely due to difficulties in cross-border cooperation among customs and tax authorities.
- The audit recommends that the European Commission conduct a thorough analysis to propose regulatory changes for more consistent application of import procedures, assess the need for mandatory transport evidence for customs consignments, and enhance cooperation between national authorities.
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