Management Plan 2019

DG TAXUD

Ref. Ares(2018)6562979 - 19/12/2018

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Contents

INTRODUCTION ............................................................................................................ 3

PART 1. MAIN OUTPUTS FOR THE YEAR ........................................................................... 5

1. A FAIRER AND DEEPER INTERNAL MARKET ............................................................... 5

1.1. A tax framework that is fit for purpose and the fight against tax fraud ................ 5

1.2. Well-functioning and modern Customs Union ................................................... 7

1.3. The EU programmes supporting EU tax and customs policy .............................. 10

2. A NEW BOOST FOR JOBS, GROWTH AND INVESTMENT ............................................. 12

2.1. Taxation enhancing EU competitiveness ........................................................ 12

2.2. An efficient customs which fosters EU competitiveness .................................... 14

3. A SECURE EUROPEAN UNION ................................................................................ 16

3.1. Strengthening security and contributing to tackling terrorism and serious crime . 16

4. EU AS A STRONG GLOBAL ACTOR .......................................................................... 19

4.1. International tax cooperation ....................................................................... 19

4.2. International customs cooperation ................................................................ 20

PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR ................................. 22

ANNEX 1. TABLES ....................................................................................................... 28

PART 1. MAIN OUTPUTS FOR THE YEAR ......................................................................... 28

PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR ................................. 36

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INTRODUCTION

In his 2018 State of the Union, President Juncker shared his views on the future of the

EU and laid the groundwork for the meeting of European Leaders in Sibiu on 9 May 2019.

And beyond Sibiu, in just less than one a year from now, we will be at the start of a new

Commission mandate, with possibly new perspectives for customs and tax policy.

The primary focus in 2019 of the Directorate-

General for Taxation and Customs Union (DG

TAXUD) will concern the delivery of the

remaining legislative proposals completing

the work on President Juncker's ten political priorities. In this context, DG TAXUD aims to

have as many as possible of its pending proposals adopted by May 2019. For some of

them there are good prospects; for others, the terrain is more challenging. Alongside the

legislative proposals, DG TAXUD seeks to make rapid progress on the three new

spending programmes – Fiscalis, Customs

and Customs Equipment – as part of the

important negotiations on the next Multi-Annual

Financial Framework.

DG TAXUD will prepare very few new initiatives in 2019. The most prominent initiative

will concern more efficient law-making in the field of taxation exploring areas to decide

on certain tax matters by qualified majority, as announced in President’s Juncker

2018 State of the Union and included in the Commission Work Programme 2019.

The next 12 months will see a continuing focus on managing the withdrawal of the

United Kingdom from the European Union, where DG TAXUD has an important role to

play. The activities for the year 2019 will take into account and reflect the needs related

to the necessary preparations for this withdrawal including both legal acts to be adopted

and technical-administrative-budgetary measures. Such work will be done in close

collaboration with the central services of the Commission.

The environment in which customs and tax operate is going through major fundamental,

long-term changes:

the rapid evolution of information technology and international business models,

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increasing volumes of small consignments,

continuous innovation in illicit trade, but also

geopolitical changes.

In today's economy, data is a new production factor that stands at the same level as

the traditional factors of labour and capital. The Artificial Intelligence race will not

necessarily be won by the geographical block with the most brilliant algorithms but rather

by the one with the richest data assets and – crucially – the block that knows what to do

with the data.

In the context of the European Commission's aim to become a more data-driven

organisation, DG TAXUD will work in 2019 on the three pillars of the DG TAXUD Data

Value Programme:

operational efficiency,

Data 4 Policy and

sharing of data with other Directorates-General and Member States.

With the multi-annual Customs Foresight project, DG TAXUD will also analyse the impact

of these trends on the Customs organisation.

In 2018 DG TAXUD created good foundations to contribute to

the debate on the future of the EU and the future of tax and

customs policies. DG TAXUD launched an internal initiative, the

“Future thinking” process, with the objective to identify the

main areas of future work and set up an inclusive process to

harvest ideas. This future-oriented process is accompanied by a

reflection on how to better work together and a continuous deepening of the

collaborative culture across the Directorate General to ensure better knowledge

management, efficient processes, staff empowerment, trust and inclusiveness. In 2019,

DG TAXUD will draw this work to a close and propose a programme for the next mandate

to be discussed at political level.

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PART 1. MAIN OUTPUTS FOR THE YEAR

1. A FAIRER AND DEEPER INTERNAL MARKET

1.1. A tax framework that is fit for purpose and the fight against tax fraud

DG TAXUD expects that the level of public interest to restore fairness to the

international tax system will remain high and that there will be continued impetus to

ensure that companies in the Internal Market pay tax where value is created.

Excellent legal progress was made in

meeting these challenges in 2018. For

instance, the Anti-Tax Avoidance

Directive adopted in 2016 has now

come into effect and all Member States

will start to implement common anti-

avoidance measures from 1 January

2019. The Commission will support,

where appropriate, the Member States

with this implementation.

Following a series of amendments to the Directive on Administrative Cooperation, a

key element of the Commission’s tax transparency agenda, a reporting obligation for

intermediaries dealing with potentially aggressive tax planning schemes will be

introduced as from July 2020. In 2019, the Commission and Member States will work on

the necessary implementing measures, including the setting up of a central directory.

The EU agenda for fair taxation also extended globally. Following the 2017 agreement on

the first EU list of non-cooperative third country jurisdictions, the Commission

intensely engaged with jurisdictions that committed to making concrete changes to their

tax systems, in line with the EU Tax Good Governance criteria. In the first quarter of

2019, the Commission will deliver to the Code of Conduct on Business Taxation its

assessment of each jurisdiction's compliance with the EU listing criteria. On this basis,

Member States will decide on an updated EU list.

Throughout 2019, DG TAXUD will continue to monitor how EU tax rules are actually

implemented and applied by Member States, taking legal action (infringement

proceedings) when necessary to remove tax obstacles and resolve double taxation

issues. Priority will be given to cases which will have a positive impact on the functioning

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of the Internal Market, thereby enhancing growth, in line with the 2016 Communication

“EU law: Better results through better application”.

The digitalisation of the global economy is happening fast and permeates almost all

areas of society. Tax administrations in Member States face similar challenges of how to

respond to a more digitalized and globalized economy, how to exploit and administer the

large potential of big data and data analytics and how to efficiently employ resources

to ensure high tax compliance. In 2019, DG TAXUD will continue to support the new

strategic dialogue between Heads of Tax Administrations to build trust among

them and work together to effectively implement EU tax law to combat tax avoidance,

evasion and fraud, and help tax compliance.

In 2016, the Commission committed to improve the

VAT system by creating a robust Single European

VAT Area and to facilitate a deeper and fairer Internal

Market. To that end, the Commission proposed,

throughout 2017 and 2018, the necessary legislation

for the Definitive VAT System for the taxation of

supplies of goods between Member States:

reducing complexities in cross-border trade for businesses,

securing Member States’ VAT revenues, and

adapting the VAT system to the global, digital and mobile economy.

The definitive VAT system will be based on taxation at destination, paving the way for

Member States to be accorded greater freedom to apply reduced VAT rates and putting

them on an equal footing. In October 2018, EU finance ministers reached agreement on a

number of VAT files, all of which should help in the day-to-day running of an EU VAT

system. In 2019, DG TAXUD will focus on proposing implementing measures for the

VAT e-commerce Package, with a view to adoption in Council by end of 2019.

In 2019, the Commission will also work, together with the Member States, on the

implementation of the recently-adopted EU Regulation on administrative cooperation

in the area of VAT and the EU-Norway Agreement on administrative cooperation in

VAT. The Commission will also pursue the negotiations in the Council of the legislative

proposal to fight VAT fraud in e-commerce by collecting and exchanging VAT-relevant

payment data information.

The fraud-proof implementation of the VAT legislation is highly dependent on

electronic systems for the exchange of information. In 2019, DG TAXUD will, for instance,

work on enabling customs authorities to automatically validate VAT numbers in customs

declarations and help Member States to make available the legally foreseen reports from

customs to the tax authorities. This should make the VAT system more robust against

unfair competition and fraud when importing goods.

Concerning excise duties, DG TAXUD will focus on the finalisation of the negotiations in

the Council on the proposals to review the structure of excise duty on alcohol and

alcoholic beverages and the general arrangements for excise duty, and will start work on

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their implementation. Also, DG TAXUD will evaluate the 2003 Energy Tax legislation,

not only by assessing the efficiency and effectiveness of the directive with the objectives

set, but also its coherence with EU energy, climate, mobility and environment policies.

1.2. Well-functioning and modern Customs Union

The Union Customs Code (UCC), a key

element of the ongoing actions to modernise

EU customs, provides a comprehensive

framework for customs rules and

procedures in the EU customs territory.

While customs legislation is adopted at EU

level, its implementation is the

responsibility of the Member States via their

national customs administrations.

The nature of the Customs Union creates interdependence between national

administrations which must be recognised if the maximum benefits are to be obtained.

This implementation challenge calls for equivalence of results by customs authorities

operating in different geographical, budgetary and organisational conditions. This is

crucial for the correct implementation of the UCC and only possible on the basis of

EU-wide interoperable IT systems and uniform application of rules by all EU customs

administrations.

Throughout 2019, DG TAXUD will seek in particular to ensure, in partnership with its

main stakeholders, an efficient and dynamic management of the Customs Union notably

through strengthening the capacity of Member States customs authorities to act as one.

The above requires a revitalised partnership between Member States and the

Commission. DG TAXUD will therefore in 2019 work on a number of specific initiatives

recognized by the First Biennial Report on progress in “Developing the EU Customs Union

and its Governance”, such as:

Actions to support a more effective enforcement of rules notably to ensure high

levels of compliance and preventing fraud;

Promotion of a stronger role for customs in ensuring joined-up border

management and law enforcement;

Developing a long-term IT strategy providing cost-effective processes;

Strengthened performance of customs administrations; and

Actions to tackle the challenges of e-commerce.

DG TAXUD will ensure, in close cooperation with the Member States and trade

stakeholders, that the UCC legal framework remains up-to-date and well adapted to

trade realities by proposing legal amendments, if necessary. This will include the new

requirements in the customs declarations to implement the VAT e-Commerce package.

The related Work Programme aligns and monitors the ongoing IT developments for

the core customs systems in which Commission, Member States’ customs authorities and

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traders are cooperating. In 2019, this UCC Work Programme will undergo a revision, a

direct consequence of the 2018 proposal to extend the period during which the

transitional UCC arrangements can be used.

In 2019, DG TAXUD will further prepare the Single Window project for the exchange of

information between national customs administrations and EU IT systems managing

veterinary, phytosanitary, environmental, agricultural and other certificates, licenses or

permits required for cross-border movement of goods. The Customs Single Window

would allow Member States customs administrations to have a single access to the

different EU certificates databases for the automated acceptance and verification of these

documents. This will also be an opportunity for the EU-level harmonization of

implementation of non-customs legislation by the national customs authorities.

Another important pillar of the Customs Governance is the Customs Union

Performance (CUP) measurement project that will deliver key data for policy

organisation and steering. In 2019, the CUP will in particular work on using big data and

data analytics.

DG TAXUD will continue to give the highest priority to the work related to the departure

of the UK from the EU. In the first place, it will continue to support the Commission's

article 50 Task Force at technical level on all aspects of tax and customs. Second, it will

give continuing high priority to the work on preparing for the scenario where the possible

failure of negotiations results in the UK being considered as a third country for all

customs purposes after 30 March 2019, while recognising the limitations on possible

contingency measures in effectively reducing disruption.

Throughout 2019, DG TAXUD will also continue its core activities related to the workings

of the Customs Union. These activities provide a solid underpinning for the day-to-day

operation of the Customs Union and include:

manage and update the TARIC system, a database covering all measures relating

to tariff, commercial and agricultural legislation for import and export, which is

critical for the uniform application of tariff measures by Member States. The

system provides economic operators with a comprehensive view of all measures

applicable when importing or exporting goods into/from the EU and results in

more than 110,000 measures and descriptions being either added or updated

every year;

manage the Common Customs Tariff and the

related work on classification of goods. In

2019, this will include the continuation of the

work for the next World Customs Organisation

(WCO) five-yearly revision exercise (HS 2022).

DG TAXUD will also ensure, in close cooperation

with the Member States, the correct and

uniform classification of goods and the swift resolution of classification

divergences by the adoption of measures or guidelines on classification. In

parallel, for the action of enhancing further the Binding Tariff Information (BTI)

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major progress will be achieved by October 2019 when all BTI-related processes

will be made fully electronic, as required under the UCC;

manage the EU common customs risk management system (CRMS) for

operational exchange of risk information between customs authorities and

Commission services. Following 2018 Council conclusions, the Commission will

set-up, together with the Member States, a mechanism to monitor the Risk

Strategy; and

continue to support the scientific arm of the Customs Union, the European

Customs Laboratories, and coordinate their activities through the Customs

Laboratories European Network.

In 2019, work will continue on improved detection technologies. Detection

Technology is a tool supporting Customs to conduct the necessary border checks in a

wide variety of environments while at the same time safeguarding legitimate trade.

Detection technology supports the field officers to make an informed decision to release

the goods or to retain them for further inspection. Together with Member States,

DG TAXUD is working on improved detection technologies, which will be key to increasing

the efficiency of customs controls along the EU external borders. This will continue in

2019 through training and sharing of information, but also by exploring the possibilities

to create a customs detection technology testing and validating centre.

In the context of the Multi-Annual Financial Framework, the Commission proposed

establishing an instrument for financial support for customs control equipment. This

should improve equivalence in the performance of customs controls throughout Member

States by avoiding the diversion of flows of goods towards the weakest points. In 2019,

the preparatory work for the implementation of this new instrument needs to be started

to ensure the instrument is fully operational as of 1 January 2021. Such preparation will,

in particular, build on and further deepen the already ongoing work with Member States

on the assessment of their needs at the different border types (sea, air, land and postal

hubs). At the same time, negotiations with the Council and the European Parliament on

the legal base are expected to be finalised.

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1.3. The EU programmes supporting EU tax and customs policy

The overall objective of the Customs 2020 programme is to support the functioning

and modernisation of the Customs Union for the benefits of the Internal Market by means

of operational and concrete cooperation between participating countries, their customs

authorities and their officials. The Fiscalis 2020 programme aims to improve the

proper functioning of the taxation systems

in the Internal Market by enhancing

operational cooperation between

participating countries, their tax authorities

and their officials. As such, both

programmes provide a unique framework

for Member States to cooperate on concrete

and operational issues, which is more cost-

effective than setting up individual

cooperation structures on a bilateral or

multilateral basis.

The financing provided under the two programmes, will allow DG TAXUD in 2019 to

support the customs and taxation European Information Systems and continue the

work on:

operating and maintaining its portfolio of trans-European customs and tax

systems, focusing on IT continuity and security, and the availability of EU wide

applicable decisions, such as for example:

o the VAT Information Exchange System (VIES), Mini One Stop Shop

(MOSS), TARIC, tariff quotas and ceilings (Quota), Binding Tariff

Information (BTIs) and Registered Exporter System (REX); or

o automatic exchange of information in direct taxation, transit, import, and

export;

prepare the deployment of the 2nd phase of the Binding Tariff Information

(BTI) system and the trader interface of the Authorised Economic Operator

(AEOs) systems,

the development of systems that will be deployed in the future in accordance with

the multiannual strategic plan for electronic customs (MASP) planning:

o the Information Sheets for Special Procedures (INF) system,

o the EU generic trader portal and new functionalities of the Uniform User

Management and Digital Signature system,

o the Import Control System,

o the upgrade of the Customs Decisions System,

o the Proof of Union Status system, and

o the Guarantee Management system;

provide the necessary central and coordination support for the development and

deployment of the trans-European systems on import, export and transit;

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progressing in the implementation and deployment of the VAT e-commerce

Package;

exploring the potential of using blockchain and other innovative technologies for

customs and taxation processing;

promoting collaboration between Member States by

means of Expert Teams to jointly tackle IT challenges

and, in particular, to reduce the overall cost borne by

Member States to develop taxation and customs trans-

European systems. In the area of taxation, willing

Member States already commonly addressed a number

of IT projects (e.g. automatic exchanges of financial

information between tax administrations) and will

continue in 2019 with, among other things, the development of an excise duties

App application. In the area of customs, work has started on jointly exploring new

approaches for the development of future IT systems; and,

progressing in the development of a European Tax Competency Framework

and in the update and rolling out of the existing European Customs Competency

Framework.

As both programmes will end in 2020, DG TAXUD will continue in 2019 the negotiation

process for the next generation of programmes to secure an appropriate post-2020

framework for cooperation and capacity-building activities in the customs and taxation

fields.

It is also important that the progress of the existing programmes activities is properly

measured and evaluated in order to determine how their implementation contribute to

achieving a deeper and fairer Internal Market and a modern Customs Union.

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2. A NEW BOOST FOR JOBS, GROWTH AND INVESTMENT

Since the global economic and financial crisis, the EU has been suffering from low levels

of investment. Coordinated efforts at European level are needed to put Europe on the

path of economic recovery. Better targeting tax policies and ensuring efficient customs

will help fostering EU competitiveness.

2.1. Taxation enhancing EU competitiveness

EU competitiveness is crucial in an ever increasing global economy. Modern, efficient and

fair tax systems play an important and multiple role in this context. The EU tax systems

should ensure that the EU Internal Market remains attractive as a business area while at

the same time allowing it to compete globally. The EU tax systems should also ensure

that the social balance is maintained or even improved: reinforcing social cohesion and

avoid increasing inequalities.

DG TAXUD will continue its analysis of tax policies of Member States in the context of the

European Semester, focusing on the four priorities of facilitating investment, boosting

employment, ensuring tax compliance and reducing inequalities. This analysis will feed

into the Annual Growth Survey, the country reports and the proposals for country-

specific recommendations.

Following the 2018 Digital Tax package,

aiming to bring the corporate tax rules into

the modern era and to maintain the integrity

of the Internal Market, the Commission will

continue in 2019 to provide leadership and

work with our international partners to bring

about a global solution to these complex and

important issues.

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The Common Consolidated Corporate Tax Base

(CCCTB), which the Commission re-launched in 2016,

would meet the dual goals of boosting competitiveness

and safeguarding tax justice in the EU. It would

radically improve the corporate tax environment

across the EU, making it simpler, cheaper and more

stable for businesses and fairer for all taxpayers.

Member States have started negotiations on the common base, and the Commission will

continue to push for agreement on this in 2019. Once the common base has been

agreed, Member States should immediately begin negotiations on the consolidation

aspects.

To help Member States reduce costs and simplify procedures for cross-border investors in

the European Union, DG TAXUD will continue to work on the implementation of the Code

of Conduct on Withholding Tax and report on the progress made by the end of 2019.

The new directive on improving dispute resolution mechanisms in the EU will be

supplemented in 2019 by an implementing regulation that ensures that the parties

involved agree to base their work on a common understanding and standard rules of

functioning.

As regards VAT, the current EU system is since more

than 25 years based on ‘transitional arrangements’

which impose two completely different systems for

domestic and for intra-Union cross-border

transactions. This has led to an outdated and

fragmented system resulting in extra compliance

costs of 11% for intra-Union cross-border supplies, in

comparison to domestic trade. To enhance fairer

competition, the Commission adopted proposals for a definitive VAT system

establishing the principle that domestic and intra-Union cross-border supplies will be

taxed in the same way. The new rules will allow businesses to deal with all their EU VAT

obligations in one place via a One-Stop-Shop mechanism, thus avoiding VAT registration

in all Member States in which they supply goods. This will create a level-playing field with

fewer burdens for EU businesses operating cross border within the Union that, in turn,

will be better prepared to operate on the international market.

In 2019, DG TAXUD will focus on the negotiation and aim for the adoption of the pending

VAT proposals, namely:

VAT Definitive System,

VAT reduced rates,

SME VAT Package, and

various implementing acts.

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In 2019, the work on the implementation

of the VAT e-Commerce package,

adopted in 2017, will continue by

preparing its application from 1 January

2021 with, amongst others, the extension

to 2021 of the one-stop shop to distance

sales of goods, both intra-EU and from third countries, and the elimination of the VAT

exemption for small consignments. This requires putting in place the necessary detailed

implementing provisions as well as updating the Member States' IT systems. The VAT

e-Commerce package will create a level playing field for business inside and outside the

EU and will improve competitiveness for EU e-commerce businesses.

2.2. An efficient customs which fosters EU competitiveness

Export and external demand are among the main sources of growth in the EU. Therefore,

the fast release of goods upon entry and the facilitation of the use of simplifications and

special procedures are key to fostering trade and increasing competitiveness. In this

context, in 2019 DG TAXUD plans to further enhance the Customs Decisions System

(CDS) and the EU Trader Portal based on the

lessons learned from the deployment of the latter

and the experiences drawn from the Information

Sheets for Special Procedures (INF) pilot. The

further roll-out of the EU generic trader portal is

envisaged in 2019 for the EU Authorised Economic

Operator (AEO) system and the Binding Tariff

Information (eBTI) system.

DG TAXUD will continue its regular dialogue with business and third countries to

ensure that the trade facilitation objectives are achieved, without jeopardising protection

against financial, safety, security and other threats linked to the flow of goods across the

EU external borders. It will promote the use of Binding Origin Information (Advance

Rulings) and, in the context of the implementation of non-preferential rules of origin,

keep consulting the industry sectors concerned.

The Authorised Economic Operator (AEO) Programme, with almost 17,000 valid

AEO authorisations, is a security programme established to counter terrorism and to

facilitate trade at the same time. The EU AEO policy is one of the key elements of

customs risk management, providing an instrument which identifies trusted traders in the

international supply chain, subsequently treating them as low risk operators in national

risk targeting systems and granting them AEO benefits. It has been fully operational

since 2008 and is accounting for over 70% of EU customs declarations at import and

export.

In order to improve the quality of the AEO programme, in 2019 DG TAXUD will be

working on the further optimisation of the programme, for instance by aligning the

implementation of the AEO criteria with UCC simplifications and facilitations. In 2019,

DG TAXUD will invest in further development of Mutual Recognition Agreements

(MRA) and AEO cooperation with partner countries to strengthen security of international

supply chains.

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On 31 May 2018, the Commission set out common financial risk criteria and

standards (FRC), a set of rules to identify systematically or “electronically flag” in

Member States customs clearance systems transactions considered to pose financial risks

and which require further scrutiny and/or control action. In 2019, DG TAXUD will work

together with Member States on practical guidance for the implementation of these

criteria and standards.

In 2019, DG TAXUD will continue to support the

Member States to combat infringements on

intellectual property rights (IPR). Homogeneous

implementation of customs enforcement of IPR across

the European Union, enhancement of risk

management in the IPR field and cooperation between authorities will be the main

priorities within the Customs Union. At international level, a crucial aspect of DG TAXUD's

work to reinforce the fight against IPR infringements will be the enhancement of

cooperation with the third countries’ customs authorities, in particular with the Chinese

customs authorities. Last but not least, DG TAXUD will continue to work with other

competent authorities and MS concerned how customs control provisions in other than

customs legislations can be implemented in a harmonised way.

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3. A SECURE EUROPEAN UNION

To ensure an effective EU response to security threats, three priorities need to be

addressed:

tackling terrorism and preventing radicalisation,

disrupting organised crime and

fighting cybercrime.

The terrorist attacks in the European Union over the last years have underlined the

importance and urgency of making swift progress towards an operational and effective

Security Union. In this context, DG TAXUD plays its role in strengthening security at the

EU external border and contributing to tackling terrorist financing.

3.1. Strengthening security and contributing to tackling terrorism and

serious crime

As gatekeeper for the passage of goods across the EU external borders, customs plays a

central role protecting the external border of the Internal Market, enabling the free flow

of goods inside the market and managing the trade inflows into the EU. EU customs also

play a crucial role in protecting the EU and its citizens, as well as protecting

international supply chains from criminal activities and terrorist attacks. By

implementing the EU Strategy and Action Plan for customs risk management, the

Commission contributes to the implementation of the European Agenda on Security, a

central component of the general objective to create an area of justice and fundamental

rights.

DG TAXUD will significantly invest in 2019 in the development of the central components

of the upgraded Import Control System (ICS2). Besides the IT delivery aspect, the

work will focus on the overall coordination efforts with trade and Member States, and the

necessary business transformation process required for the successful start of the new

system on 15 March 2021. In parallel, the development activities for the reshaped

Customs Risk Management System (CRMS2) will be carried out.

These two systems are core Union customs instruments protecting the external borders

of the EU Internal Market from risks linked to the international movement of goods,

including those linked to terrorism and crime.

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In 2019, discussion will continue in the context of the Security Union and at Council level

on the main interlinks between customs and law enforcement authorities. At the

same time, DG TAXUD will continue its efforts to further strengthen its cooperation with

EUROPOL and the EU Serious and Organised Crime Threat Assessment (SOCTA) Advisory

Group.

In the last two years, the Commission adopted

several legislative proposals to cut off the sources of

terrorist financing like the proposals on illicit cash

movements, illicit trade in cultural goods and EU

certification of airport screening equipment.

DG TAXUD will continue in 2019 the inter-institutional negotiations on the pending

Commission proposal on import of cultural goods. Following the adoption of the new

Regulation on cash controls, the implementation work will be initiated, in particular

information exchange between competent authorities and the Financial Intelligence Units,

and the common risk management framework for controls on cash. The Commission will

also continue to implement the EU Action Plans against illicit trafficking and the use of

firearms and explosives. In the taxation area, DG TAXUD will continue working with

national tax administrations, OLAF, Europol and the European Public Prosecutor Office

(EPPO) to tackle the financing of terrorism and serious crime by combating tax fraud.

A particular and important area DG TAXUD is closely involved in is air cargo security.

Work in 2019 will focus on:

Effectively ensuring the security of air cargo shipments entering and/or exiting the

EU through

o the implementation of the EU customs provisions introduced by the UCC

and its delegated and implementing provisions; and

o bilateral cooperation with major global players in this area, such as US,

Canada and China;

Further developing and supporting referral policies and processes (EU wide and

globally), especially through close cooperation between Customs and civil

aviation.

In 2019, EU customs will give specific attention to the air cargo shipments moved

under the Universal Postal Union (UPU) Convention. Recent threat assessments confirm

that the postal stream continues to be very vulnerable and increasingly targeted for

smuggling of dangerous products, such as improvised explosive devices, drugs,

precursors or small weapons. DG TAXUD will develop initiatives together with the

Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (DG

GROW) to strengthen the air cargo security policy with regard to the postal stream by,

for instance:

talking to the relevant UPU instances, and

sensitising national post authorities to increase their measures to counter air

cargo security threats.

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The Smart and Secure trade lanes' (SSTL)

Pilot Project with China and Hong Kong

enhances supply chain security and facilitation

for reliable traders. The overall aim remains to

strengthen end-to-end supply chain security for

trade in goods and tackle risks, including those

related to terrorism, by promoting multi-layered risk management, intelligence and

information exchanges. In 2019, the work under SSTL will continue to focus on

implementing the third phase of this project and will in particular involve the further

expansion of the scope to air and rail. As a joint operational cooperation initiative

involving major ports in the EU and in Asia, the SSTL activities will also focus on

enhancing active participation and communication between customs officers working in

ports.

In 2019, DG TAXUD will carry out a comprehensive evaluation of the EU Drug

Precursor legislation. This will be the basis for a report to be submitted to the

European Parliament and the Council on the functioning and implementation of the EU

Drug Precursor legislation. This activity contributes to the overall EU Drugs Strategy

(2013-2020).

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4. EU AS A STRONG GLOBAL ACTOR

The EU needs a strong common foreign policy to:

respond efficiently to global challenges, including the crises in its neighbourhood,

project its values,

reject protectionism and keep EU trade standards, and

contribute to peace and prosperity in the world.

Developing international cooperation in the tax and customs areas helps to achieve these

Commission priorities. Engaging deeper and more comprehensively with strategic

partners will be key.

4.1. International tax cooperation

Tax fraud and tax evasion is a global phenomenon that can only be tackled if

everybody works together internationally. In 2019, the EU will continue to encourage

third countries to adhere to international tax good governance standards. As such, DG

TAXUD will regularly engage with external partners like the G20, the Organisation for

Economic Co-operation and Development (OECD) and the International Monetary Fund

(IMF). This will include notably digital taxation where DG TAXUD closely cooperates

with the OECD BEPS Action 1 Task Force on the digital economy. In the area of automatic

exchange of information, DG TAXUD will ensure, in cooperation with the OECD, that

mandatory disclosure rules help to capture arrangements designed to circumvent

reporting obligations.

DG TAXUD will also continue to develop the EU's international administrative cooperation

network in the area of VAT, with the implementation of the EU-Norway Agreement,

participation in OECD fora on the subject and exploratory talks with other non-EU

countries.

In 2019, DG TAXUD will continue to cooperate with the Code of Conduct Group

(Business Taxation) that manages and monitors the EU list of uncooperative jurisdictions,

as will DG TAXUD's cooperation with the Group. This will include monitoring tax

jurisdictions, and review of changes in the tax practices of EU listed countries.

20

4.2. International customs cooperation

The customs authorities in the European Union can only accomplish their missions if their

actions are supported by cooperation with the customs authorities of third

countries. International cooperation is thus an integral part of the Union's Customs

policy. This requires negotiating and agreeing the necessary international agreements

with our trading partners in order to adapt this cooperation to the trading needs of the

European Union. It also requires implementation of those agreements by third countries

and within all EU Member States, so as to ensure that the implementation of customs

policy measures is carried out consistently and effectively across the Union.

The Commission will in 2019 continue to design

Customs Trade Facilitation and Rules of Origin

under ongoing bilateral negotiations of Free Trade

Agreements (FTAs) with, notably, Mercosur, Chile,

Indonesia, New Zealand, Indonesia and Australia. The

benefits for EU producers, exporters and citizens are

most notably felt when the Commission puts these

agreements into concrete actions. This work on

implementation will, in particular, intensify with the

partners where the EU has concluded negotiations of new or modernised FTAs like with

Singapore, Vietnam, Japan and Mexico, but also regarding FTAs already in force, like with

South Korea, Canada and the countries of the Pan Euro Mediterranean area

(Mediterranean countries, EFTA countries, Western Balkan countries, Moldova, Georgia

and Ukraine). In particular, for the latter ones, DG TAXUD is pushing the modernisation

of the Rules of Origin applicable to all these countries and the promotion of regional

trade integration through the progressive extension of cumulation under the Pan Euro-

Mediterranean Convention.

The operation of the rules of origin supporting the Generalised System of Preferences

(GSP) will be further enhanced in 2019, in particular by ensuring the continuous

expansion and proper management of the system of registered exporters (REX) to self-

certify GSP preferential origin, including DG TAXUD support to beneficiary countries. DG

TAXUD continues investing in the monitoring of the functioning of preferential

arrangements in order to ensure the correct use of the preferences.

An important element in DG TAXUD’s international agenda is the integration of Eastern

neighbouring countries such as the Republic of Moldova, Georgia, Ukraine and the

Western Balkans with the EU's economy through the alignment of their customs

regulations with the EU. Bilateral talks on customs issues with other Eastern neighbours

and the negotiations on the customs chapter of Comprehensive Enhanced Partnership

Agreements with Central Asia will continue.

Concerning the African, Caribbean and Pacific (ACP) States, DG TAXUD will in 2019 make

all efforts to enhance the provisions on customs cooperation and rules of origin in

regional Economic and Partnership Agreements, and ensure they deliver the

expected benefits in terms of development, in particular in Africa.

21

In addition, in 2019 the conclusion and implementation of an amendment to the EU-

Morocco Association Agreement aiming at extending trade preferences to products of

Western Sahara is expected.

In 2019 the EU will face the challenge of the UK's withdrawal and the need to design the

future EU–UK relationship will arise. The Commission will work to ensure the best

results on the customs aspects of the new relationship, having in mind the interests of

EU businesses and the integrity of the EU internal market.

At multilateral level, DG TAXUD will in 2019 continue to take active part in shaping the

policies of the WCO. This includes, amongst others, the development of the eCommerce

Framework of Standards, the comprehensive review of the Revised Kyoto Convention and

the implementation of the World Trade Organisation’s (WTO) Trade Facilitation

Agreement.

Without correct customs value, as regulated at the WTO level, our trading system cannot

function properly. In 2019, DG TAXUD will continue to work closely with its partners in

the WTO and WCO to implement the WTO Valuation Agreement and address the

challenges raised by new developments in trade, like global value chains, e-commerce

and the digital economy. Consultations with stakeholders on the opportunity and

feasibility of an EU system of binding valuation information will continue.

The Commission will also take forward the work of the High Level Seminar with Member

States in Albena (Bulgaria) in June 2018, by preparing a Strategic Framework on

customs information exchange with third countries. This Strategic Framework will

outline priorities in terms of the type of information to be exchanged, with whom and

why we would exchange such information.

22

PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR

A. Human resource management

DG TAXUD will continue to foster a culture of cross-

directorate collaboration, proactive

communication, staff inclusion and staff

engagement. Internal communication activities, such

as "open fora" and lunch-time conferences, will provide

occasions for in-depth reflections on different topics and

for continued exchange and contact between colleagues.

Encouraging fit@work activities and enlarging the use of

the new well-being room, in collaboration with DG HR,

should increase job satisfaction and improve the health

of staff. The results of the 2018 Commission wide staff

survey, expected to become available in the first half of 2019, will provide a valuable

reality check. The results will be analysed, shared with staff and pinpoint actions for

follow-up.

In 2019 DG TAXUD will continue to improve career

development and talent management, including

through adequate training activities. The specialised

external competitions in the fields of Customs and

Taxation of which the results will become available end

2019, should contribute to maintain the high level of

expertise that characterises DG TAXUD's staff and

should address the risks presented by a substantial

number of colleagues approaching retirement age. In

this respect, DG TAXUD will also be putting in place policies and measures to ensure

better knowledge management, retention and transfer.

In 2019, DG TAXUD will continue working on the promotion and support of first female

managers, in line with the Commission's target for female representation in

management positions.

23

B. Financial Management: Internal control and Risk management

Throughout 2019, the internal control and risk management processes will be

implemented as corporately defined by the Directorate General for Budget (DG BUDG)

and the Secretary General (SG). Indicators, as defined in DG TAXUD’s 2016-2020

Strategic Plan will be closely monitored. The new internal control framework will be fully

applicable throughout 2019, results of which will be reported in the 2019 annual activity

report.

The strategy for on-the-spot ex-post audits for the joint actions (actions

implemented by the Member States in the scope of the Customs 2020 and Fiscalis 2020

grants) was fine-tuned in 2017. In 2019, four on-the-spot audits and one desk review

audit are planned to be performed.

DG TAXUD's Anti-Fraud Strategy (AFS)

focuses on awareness raising activities on

potential fraud risks and ethical behaviour among

staff. The strategy addresses the active

cooperation with the European Anti-Fraud Office

(OLAF) and the integration of the fraud aspect

into the Strategic Planning and Programming

(SPP) cycle of the DG. In particular, the AFS aims

at reinforcing the activities related to fraud-

proofing of legislation through compulsory

consultation of OLAF during the related

Interservice Consultations for any new legislative

proposal. Integrating the fraud aspects into the

DG's SPP and risk management cycle will be

managed by monitoring the implementation of

the Anti-fraud Strategy Action Plan, by

discussing potential fraud risks resulting from the

yearly risk assessment exercise and proposing

further actions into the AFS action plan, if and when necessary.

Furthermore, the AFS’ purpose is to ensure full compliance with the recommendations

stemming from the audit by the Internal Audit Service (IAS) on the Traditional Own

Resources (TOR) by identifying fraud risks and prevent fraud in this area. The action

plan for 2018-2020 focuses on a high level of awareness amongst DG TAXUD staff on

anti-fraud related matters. OLAF and the Investigation and Disciplinary Office of the

Commission (IDOC) will be invited to provide DG TAXUD's staff with a presentation on

real-life examples in the area of anti-fraud and ethical behaviour.

As far as the in-house designed training on IT, data and document security in DG

TAXUD is concerned, the staff turnover will be closely monitored and newcomers will be

systematically invited. Newcomers will also be invited to the corporate training on

ethics.

As regards strengthening the cooperation with OLAF, DG TAXUD regularly participates

in the Fraud Prevention and Detection Network meetings. DG TAXUD remains committed

to cooperate with OLAF on any issues as requested.

24

C. Better Regulation

The main planned outputs linked to the Better Regulation objective in DG TAXUD’s 2016-

2020 Strategic Plan are listed in annex 1 (in the tables under Part 1) under the relevant

specific objective. They are presented in the tables under the headings "All new

initiatives and REFIT initiatives from the Commission Work Programme" and "other

important items".

D. Information management aspects

In 2019, DG TAXUD will continue contributing actively to the

implementation of the corporate information management

strategy. DG TAXUD has reinforced its efforts in the area of data

analysis to support policy making and administration. A detailed

action plan will be presented in 2019. DG TAXUD started in 2018

to analyse the potential of blockchain for the setting in place

of the Trans-European systems, both in terms of costs reduction

and reduction in the time needed for the implementation of the IT

systems supporting the Customs and Taxation legislations. Given

the positive results obtained already, the work will continue in that field by launching

pilot projects on the System for the exchange of excise data (SEED) and eCommerce

system.

The cross-unit collaboration on "future thinking", a bottom-up exercise launched in 2018

to prepare for the next Commission and the taxation and customs policies of the future,

will support the work on the proposal for the programme for the next mandate.

DG TAXUD will continue to

invest in internal

communication with an

emphasis on two-way

communication. The focus

will be twofold: using TAXUD’s internal communication channels to support the main

corporate human resource priorities and to keep staff informed of key policy

developments, but also provide staff with ways to openly share their views with

management and actively participate in open discussions across the boundaries of

Directorates and Units, including at the monthly "Open Forum" meetings with DG

TAXUD's Director-General.

In 2019, collaborative working will remain an important pillar of the DG TAXUD

working culture. The monthly lunchtime sessions for sharing experiences among

colleagues will continue and when relevant, project teams will be created to organise new

work streams. The collaborative drafting and sharing of information is already

concentrated in a limited number of platforms and DG TAXUD plans to asses and

optimise the use of these collaborative workspaces.

Following the corporate visibility pilot project, TAXUD made its documents in the

corporate document management system (ARES) as a principle visible to all

Commission colleagues. In 2019, DG TAXUD will follow up that good practices remain

established and remind TAXUD colleagues about the changed way of work. The document

25

management team will in 2019 also continue to monitor and stimulate good document

management practices in the Directorate General. This will include amongst others:

Regular reminders on open tasks and non-filed documents

On demand training on registration and filing of documents

Finally, DG TAXUD will continue to raise awareness among TAXUD colleagues on the new

data protection rules so as to ensure a high level of compliance.

26

E. External communication activities

DG TAXUD employs a four-phase communication strategy which includes, depending on

the proposals concerned:

Explaining the problem that requires a

remedy at EU level;

Presenting the solution proposed by the

Commission;

Assisting the legislative process in the

Parliament and Council; and

Once adopted, supporting Member States and stakeholders during the

implementation and application process, while emphasising the EU-added value

of the adopted legislation.

In 2019, communication activities will mainly be targeted towards media and

stakeholders, with a continued effort to carry out more localised initiatives and

outreaches.

The focus will be on the proposals for:

taxation of the digital economy,

a renewed VAT system for the EU,

CCCTB, and,

Cultural Goods.

A second important strand of communication will be the actions carried out in relation to

the UK’s withdrawal from the EU, drawing EU economic operators’ attention to the need

to assess their business processes and to prepare for the UK’s departure of the EU.

DG TAXUD will also follow up on the successful communication campaign marking the

50th Anniversary of the Customs Union in 2018, with actions on, for example:

Cash Controls

Drug Precursors Control,

Customs fraud, seizures of counterfeit and IPR

violations,

Customs role in safeguarding citizens’ health

and the environment, embedded in the

corporate “EU Protects” campaign.

27

To measure the citizens’ and businesses’ awareness and understanding of the Customs

Union, two Eurobarometer surveys will be conducted.

In addition, DG TAXUD will continue targeted continuous actions to:

keep EU businesses informed on import and export procedures;

inform national Customs and Tax authorities on the Customs 2020 and Fiscalis

2020 programmes and their successors;

raise awareness around e-learning modules on Tax and Customs issues, made

available to businesses and national administrations.

F. Example(s) of initiatives to improve economy and efficiency of financial and

non-financial activities of the DG

In 2019, DG TAXUD intends to undertake a number of initiatives to improve economy

and efficiency of non-financial activities of the DG, such as:

1) its Data Program to identify how data analysis can support policy making and

administration. A detailed action plan will be proposed in 2019.

2) deploying cross-unit project teams combining the expertise from different policy

areas for crosscutting files like data analysis, digital tax or eCommerce.

28

ANNEX 1. TABLES

PART 1. MAIN OUTPUTS FOR THE YEAR

Relevant general objective(s): A deeper and fairer Internal Market with a strengthened

industrial base

Specific objective 1.1: An EU tax framework that is fit for

purpose and the fight against fraud.

Related to spending

programme Fiscalis 2020

Main outputs in 2019:

Delivery on legislative proposals pending with the legislator

Output Indicator Target

Digital service tax Adoption by Council May 2019

Common Consolidated Corporate

Tax Base (CCCTB) and Common

Corporate Tax Base (CCTB)

Adoption by Council May 2019

VAT SME Package Adoption by Council May 2019

VAT Definitive System Adoption by Council May 2019

VAT Reduced Rates Adoption by Council May 2019

Proposal for a Council Directive

amending Council Directive

2006/112/EC of 28 November 2006

as regards certain value added tax

provisions relating to e-commerce.

(PLAN/2018/3206)

Adoption by Council Q4 2019

Proposal for a Council Implementing

Regulation laying down

implementing measures for

Directive 2006/112/EC on the

common system of value added tax

amendment (EU) No 282/2011.

(PLAN/2017/2272)

Adoption by Council Q4 2019

Proposal on the exchange of VAT-

relevant payment data

(PLAN/2017/2023)

Adoption by Council

Q4 2019

VAT and excise aspects of the

inclusion of the Italian municipality

of Campione d’Italia and the Italian

waters of Lake Lugano in the

customs territory of the Union

Adoption by Council May 2019

Recast of the general arrangements

for excise duties.

Adoption by Council Q1 2019

Recast of computerising the

movement and surveillance of

excise goods

Adoption by the co-

legislators Q1 2019

Administrative cooperation in the

field of excise duties

Adoption by Council Q1 2019

29

Revision of the harmonisation of the

structures of excise duties on

alcohol and alcoholic beverages

Adoption by Council Q1 2019

Proposal for dock dues tax French

outermost regions

(PLAN/2018/4021)

Adoption by Council Q1 2019

Enhanced cooperation in the area of

financial transaction tax

Adoption by Council

Q1 2019

All new initiatives / significant evaluations from the Commission Work Programme

Output Indicator Target

Commission Implementing

Regulation laying down detailed

rules for special schemes for

taxable persons supplying services

to non-taxable persons or making

distance sales of goods.

(PLAN/2018/3927)

Adoption by College Q3 2019

Proposal for VAT and excise

treatment of supplies linked to

common EU defence efforts

(PLAN/2018/2962)

Adoption by College Q1 2019

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

Transaction Network Analysis Tool Entry into operation Q1/Q2 2019

Commission Implementing

Regulation on the exchange of

customs information, vehicle

registration data and the

identification of Eurofisc officials

accessing the information (VAT

administrative cooperation)

Adoption by College Q1/Q2 2019

Commission Implementing

Regulation on Eurofisc procedural

arrangements and statistics (VAT

administrative cooperation)

Adoption by College Q3/Q4 2019

Expert teams for the collaborative

development by Member States of

Transaction Network

Analysis (TNA)

Mobile Application for EMCS

Controls Development

Excise Duties Calculator

Submission of

Final Report

Interim Report

Interim Report

Q4 2019

Activities organised under Fiscalis

2020 programme to support fight

against fraud, tax evasion and

aggressive tax planning and to

support administrative cooperation

Number of activities

Remain stable or grow

Activities organised under Fiscalis

2020 programme to enhance the

administrative capacity of

Number of activities

Remain stable or grow

30

participating countries and to

support the implementation of

Union law and legislation

Other important outputs

Output Indicator Target

Evaluation of VAT Invoicing Rules

(PLAN/2018/1293)

Delivery by contractor Q1 2019

Evaluation of the Energy Tax

Directive (PLAN/2017/1028)

Adoption by College Q1 2019

Evaluation of the excise duty rates

applied to manufactured tobacco

(PLAN/2017/1855)

Adoption by College Q3 2019

DOM RUM Evaluation

(PLAN/2018/3201)

Adoption by College Q4 2019

Evaluation of the functioning of the

Directive on administrative

cooperation (DAC)

(PLAN/2017/2103)

Adoption by College Q1 2019

VAT Gap study 2019 Publication Q3 2019

Council Decisions on Joint

Committee Decisions for the

implementation of the EU-Norway

Agreement on VAT cooperation

Adoption by Council Q2 2019

Relevant general objective(s): A deeper and fairer Internal Market with a strengthened

industrial base

Specific objective 1.2: Well-functioning and modern

Customs Union.

Related to spending

programme Customs 2020

Main outputs in 2019:

Delivery on legislative proposals pending with the legislator

Output Indicator Target

Amendment to the Union Customs

Code extending from 2020 to 2025

the deadline for use of pre-existing

IT and paper systems for the

completion of some customs

formalities, pending full completion

of the UCC IT systems

Adoption by co-legislators May 2019

The inclusion of the Italian

municipality of Campione d’Italia and

the Italian waters of Lake Lugano in

the customs territory of the Union

Adoption by co-legislators May 2019

31

All new initiatives / significant evaluations from the Commission Work Programme

Output Indicator Target

Preparatory work for a proposal for

EU Single Window environment for

Customs

(PLAN/2017/1149)

Adoption by College Q1 2020

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

UCC Work Programme Amendment

(PLAN/2018/4357)

Adoption by College Q2 2019

2019 UCC Delegated Act

(PLAN/2018/4290)

Adoption by College Q3 2019

2019 UCC Implementing Act

(PLAN/2018/4292)

Adoption by College Q3 2019

Expert team pooling expertise to

resolve complex cases of divergent

tariff classification (BTI II)

Expert team operational

number of classification

cases resolved

Q2 2019

Q4 2019

Expert teams to pool and share

specific analytical expertise of

Customs Laboratories at EU level

(Customs Laboratories expert teams

– CLET I and CLET II)

Submission of final report

CLET I

CLET II operational

number of analysis

Q2 2019

Q2 2019

Q4 2019

Activities under the Customs 2020

programme supporting a modern and

well-functioning Customs Union

Number of activities Remain stable or grow

Other important outputs

Output Indicator Target

Annual update and publication of the

Combined Nomenclature including all

tariff related international

agreements

(PLAN/2018/4293)

Timely publication 31 October 2019

Measures adopted to ensure uniform

classification within the EU

Number of measures Throughout 2019

Update TARIC database Daily update on working days Throughout 2019

32

Relevant general objective(s): A deeper and fairer Internal Market with a strengthened

industrial base

Specific objective 1.3: The EU programmes supporting

EU tax and customs policy.

Related to spending

programmes Customs 2020,

Fiscalis 2020

Main outputs in 2019:

Delivery on legislative proposals pending with the legislator

Output Indicator Target

Post-2020 Fiscalis programme Adoption by co-legislators Q2 2019

Post-2020 Customs programme Adoption by co-legislators Q2 2019

Customs Control Equipment

Instrument

Adoption by co-legislators Q2 2019

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

European Information systems in

operation for taxation

Number of European

Information systems in

operation for taxation, as per

Annex 1 of Fiscalis 2020

regulation

European Information systems in

operation for customs

Number of European

Information Systems in

operation, as per Annex 1 of

Customs 2020 Regulation

Expert Teams on Managed IT

Collaboration in taxation (MANITC III

and MANITC IV)

Submission of final report

MANITC III

MANITC IV operational

Q4 2019

Q4 2019

Expert Teams on new approaches to

develop and operate Customs IT

systems (ETCIT I and ETCIT II)

Submission of final report

ETCIT I

ETCIT II operational

Q4 2019

Q4 2019

Other important outputs

Output Indicator Target

Customs 2019 and Fiscalis 2019

Annual Work Programmes

(PLAN/2017/1540)

Adopted by College Q1 2019

Customs 2020 final evaluation Final report Q2 2021

Fiscalis 2020 final evaluation Final report Q2 2021

33

Relevant general objective(s): A new boost for Jobs, Growth and Investment

Specific objective 2.1: Taxation enhancing EU

competitiveness.

Related to spending

programmes Fiscais 2020

Main outputs in 2019:

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

Activities under the Fiscalis 2020

programme supporting the

implementation of Union law by

enhancing administrative capacity of

participating countries with a view to

assisting in reducing administrative

burden of tax authorities and

compliance cost for taxpayers.

Number of activities Stable or grow

Relevant general objective(s): A new boost for Jobs, Growth and Investment

Specific objective 2.2: Ensuring efficient customs

fostering EU competitiveness.

Related to spending

programmes Customs 2020

Main outputs in 2019:

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

Activities under the Customs 2020

programme supporting an efficient

customs fostering EU

competitiveness and addressing the

challenges presented by e-

commerce, in particular in regard to

low-value consignments

Number of activities Stable or grow

Other important outputs

Output Indicator Target

Council Regulations granting

autonomous tariff suspensions and

opening of autonomous tariff quotas

Ensure administrative

response to suspension and

quota requests and timely

publication of Regulations

30 June 2019

&

31 December 2019

Reassessment of AEO authorisations Reassessment completed 1 May 2019

34

Relevant general objective(s): A secure European Union

Specific objective 3.1:Strengthening security and

contributing to tackling terrorism and serious crime.

Related to spending

programmes Customs 2020

Main outputs in 2019:

Delivery on legislative proposals pending with the legislator

Output Indicator Target

Import of cultural goods Adoption by co-legislator May 2019

Important items from work programmes/financing decisions/operational programmes

Output Indicator Target

Cooperation with other law

enforcement agencies

Number of activities with

Europol and Frontex

Throughout 2019

Customs Eastern and South-Eastern

land border expert team (CELBET II)

pooling expertise to deal with the

Union’s Eastern and South-Eastern

land border management issues and

jointly perform operational tasks.

Submission Interim Report

Q3/Q4 2019

Activities under the Customs 2020

programme supporting a secure

Europe

Number of activities Stable or grow

Other important outputs

Output Indicator Target

Report on the functioning and

implementation of the EU drug

precursor legislation

Adoption by College Q4 2019

Mechanism to monitor the EU

Strategy for Risk Management.

Adoption mechanism by the

RIMSCO working group

Q4 2019

Report on the export of cultural

goods

PLAN/2017/2152

Adoption by College Q4 2019

Relevant general objective(s): EU as a strong global actor

Specific objective 4.1: Developing international

cooperation.

Related to spending

programmes Customs 2020

Main outputs in 2019:

All new initiatives / significant evaluations from the Commission Work Programme

Output Indicator Target

Evaluation of the Customs

Cooperation and Mutual

Administrative Assistance Agreement

with China

(PLAN/2018/3975)

Adoption by College Q4 2019

35

Other important outputs

Output Indicator Target

Agreement between the EU and

Morocco amending Protocols 1 and 4

of the EU-Morocco Association

Agreement

Adoption by Council Q1 2019

Negotiations of Customs provisions in

Association Agreements or Customs

and Tax chapters to Comprehensive

Cooperation Agreements

Agreement on major concepts

with Andorra, Monaco, San

Marino, Kyrgyzstan,

Uzbekistan and Azerbaijan

Q1 2019

Adoption of Mutual Recognition

'Authorised Economic Operator' with

Canada

Adoption by EU-Canada Joint

Customs Cooperation

Committee

Q3 2019

Revision and Update of Rules of

Origin in Pan-Euro-Mediterranean

(PEM) Convention

Adoption by Council Q3 2019

Negotiation on chapter of Rules of

Origin and/or of Customs and Trade

Facilitation in Free Trade Agreements

(FTAs)

Agreements on major

concepts with Indonesia, New

Zeeland, Australia, Chile and

Tunisia.

Q4 2019

Screening implementation tax and/or

customs acquis in Montenegro,

Albania and/or former Yugoslav

Republic of Macedonia.

Report adopted by DG Q4 2019

Capacity Building on the Registered

Exporter's (REX) System with

Countries under the General System

of Preferences (GSP)

Attendance to one of four

yearly seminars by targeted

countries

Throughout 2019

Monitoring of the implementation of

preferential rules of origin

Monitoring actions undertaken Throughout 2019

Identification of additional products

to be covered by legally binding non-

preferential rules of origin

Products identified to be

covered by legally binding

non-preferential rules of

origin.

Throughout 2019

36

PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR

A. Human resource management

Objective: The DG deploys effectively its resources in support of the delivery of

the Commission priorities and core business, has a competent and engaged

workforce, which is driven by an effective and gender-balanced management

and which can deploy its full potential within supportive and healthy working

conditions.

Main outputs in 2019:

Output Indicator Target

Increased female

representation in

Middle Management

% of women in MM posts:

Baseline 01/01/2017:23,8%

Additional female “new”

recruitments in Head of Unit

positions by end 2019

Increased Staff

satisfaction based on

actions implemented in

2018/2019 e.g.

improved on-boarding

of newcomers,

development of TAXUD

career path, job

shadowing…

Commission staff survey staff

satisfaction index

Result better than Commission

average in 2018 survey

Increased Staff

engagement based on

actions implemented in

2018/2019 e.g.

promote better

communication and

improved ways of

collaboration.

Commission staff survey staff

engagement index.

Result better than Commission

average in 2018 survey

Improved talent- and

succession

management. Better

knowledge

management (identify

& manage expertise)

Approval of the talent and

succession policy by Senior

Management.

Significantly improve

Talent/Succession Management

Increased job

satisfaction and

improved health of

staff. Better use of the

well-being rooms and

improved facilities.

The results of the 2018

Commission staff survey in

the field of fit@work.

Improve job satisfaction and

health of staff. Connecting

people, breaking silos and

improve motivation and

satisfaction of staff.

Action plan as follow-

up on staff opinion

survey 2018

Approval of action plan by

Director General

Propose action plan 6 months

after the survey results are

available

37

B. Financial Management: Internal control and Risk management

Objective 1: Effective and reliable internal control system giving the necessary

guarantees concerning the legality and the regularity of the underlying

transactions.

Main outputs in 2019:

Output Indicator Target

Estimated residual

error rate

Residual error rate (%) < 2% of all payments made

Estimated overall

amount at risk for the

year for the entire

budget under the DGs

responsibility

Amount at risk (€) < 2% of total budget

Estimated future

corrections

% of corrective capacity All detected errors are corrected

Objective 2: Effective and reliable internal control system in line with sound

financial management.

Main outputs in 2019:

Output Indicator Target

Timely execution of

payments

Percentage of payments

made within the time limits

(all budgets)

>95%

Open

recommendations from

European Court of

Auditors (ECA) on the

regularity and legality

of sampled financial

transactions

Number of critical

recommendations from ECA

overdue for more than 6

months

None

Conclusion reached on

cost effectiveness of

controls

Positive or negative

conclusion

Positive conclusion on the

effectiveness, the efficiency and

the economy of controls

Cost of controls over

expenditure

Total cost of controls

(procurement and grants)

< 3% of payments made

Time to pay Number of days < 30 days

Time to procure Number of days between

publication in the OJ and

signature of the award

< 150 days

38

Objective 2: Effective and reliable internal control system in line with sound

financial management.

Main outputs in 2019:

decision

Implementation of the

new internal control

framework

Number of deficiencies

identified during the

implementation of the new

internal control framework

None

Objective 3: Minimisation of the risk of fraud through application of effective

anti-fraud measures, integrated in all activities of the DG, based on the DG's

anti-fraud strategy (AFS) aimed at the prevention, detection and reparation of

fraud.

Main outputs in 2019:

Output Indicator Target

Updated anti-fraud

strategy (AFS) of DG

TAXUD elaborated on

the basis of the

updated OLAF

methodology

Updated AFS Updated AFS with the Traditional

Own Resources and fraud

proofing of legislation aspects,

adopted by the Management and

aligned with the updated CAFS.

Increase level of anti-

fraud awareness

Number of anti-fraud related

training sessions for TAXUD

staff

2 sessions per year

Reporting on progress

of the AFS

implementation

Report to the Management

Meeting

Reporting to the Management by

end 2019

39

E. External communication activities

Objective: Citizens perceive that the EU is working to improve their lives and

engage with the EU. They feel that their concerns are taken into consideration in

European decision making and they know about their rights in the EU.

Main outputs in 2019:

Output Indicator Target

DG TAXUD Europa

website 1. Number of page views

2. Number of unique visitors

3. Traffic to website from

social media (measured

as referrals)

1. Maintain number of views at

level of 2018

2. Maintain number of unique

visitors at level of 2018

3. 10% increase over 2018

annual figures

Social media outreach 1. Number of posts

2. Number of followers or

subscribers

3. Number of engagements

10% increase over 2018 annual

figures

Evaluation of the

Customs 50th

Anniversary campaign

increase in citizens'

awareness of the Customs

activities

2% increase in awareness of

customs activities compared to

2015 Eurobarometer survey

Annual communication spending:

Baseline (2018) Estimated commitments (2019)

800.000 EUR (estimated) 800.000 EUR