INSIGHTS FOR IMPROVING INTERNATIONAL TRADE EFFICIENCY THROUGH EU CUSTOMS TAXATION POLICY

Abstract

The European Union's customs taxation policy is significant for balancing economic stability, market protection, and trade facilitation. As a customs union, the European Union implements the unified policy and applies the external tariff on imports from non-EU countries, allowing goods to move freely between member states. This policy focuses on principles of neutrality, simplicity, and fairness, using tools such as VAT, customs duties, and excise taxes to collect revenue and regulate trade. Additionally, customs taxation fulfils regulatory, protective, and fiscal functions, impacting international trade by managing goods movement, shielding local industries, and generating public funds. Recommendations for improving European Union customs policy include harmonizing tariffs, streamlining customs procedures, and enhancing digital integration. Reducing tariff disparities and embracing technology would simplify trade, cut costs, and increase transparency. This modernization would enable the European Union to respond better to global trade dynamics, fostering long-term economic growth. The upcoming Carbon Border Adjustment Mechanism will further integrate environmental goals into the tax framework, enhancing the European Union’s role in sustainable trade. Overall, a reformed and digitized European Union customs system could strengthen the Union's competitiveness, making it a stronger player in the international trade landscape while supporting both European Union level initiatives and member state priorities.