The European Commission released guidance on customs cooperation to detect, report, and react to suspicious activities. The purpose of the guidance is to strengthen the ability of customs authorities and all businesses involved in transport, logistics, and supply chains to identify, monitor, and prevent irregular activities. In a broader sense, by publishing this document, the European Commission aims to create safer and more secure supply chains across all modes of transport by improving cooperation between the public and private sectors.

The Scope of the Guidance

The guidance provides an overview of key threats to the EU's security and stability, including the pervasive influence of organised crime using illicit trafficking of goods. As noted, organised crime groups increasingly rely on sophisticated and advanced methods to avoid detection, making it necessary for customs authorities to strengthen their capabilities and cooperation. 

The document also includes EU VAT data provided by the European Public Prosecutor’s Office, which reported that serious cross-border VAT fraud alone caused approximately EUR 11.5 billion in damage to the EU budget in 2023. Moreover, the document states that more than 80% of criminal networks operating in the EU use legitimate business entities to conceal or launder criminal proceeds.

As a response, the guidance underlines the importance of future EU Customs reform, the European Ports Alliance, the EU Ports Strategy, and initiatives under the Preparedness Union strategy as a way for the EU and EU countries to enhance the security of supply chains, means of transport, and critical infrastructure such as harbours, airports, and logistical hubs.

The guidance further provides examples of suspicious activities and provides useful information and advice for economic operators on how to act and report them. Therefore, if transportation and logistics companies recognize any indicators of irregular transactions, suspicious activities, or unauthorized handling of goods within supply chains, they should report to the Tax and Customs Authorities.

A complete notification should begin with a clear description of the suspected irregularity, explaining what type of transaction or activity appears suspicious. It should also include precise information about when and where the issue was detected, including the place, date, and time, as this helps authorities establish context and trace the event.

Conclusion

The European Commission's guidance underlines the importance of cooperation not only between Tax and Customs authorities on the EU-level and between EU countries, but also between the EU, its countries, and key private sector stakeholders involved in the supply chain, primarily transportation and logistics companies. Each of these parties plays an important role in the fight against customs and tax fraud and evasion.