Opinion: Customs & Dutch politics.
- Wed, October 09, 2024
- 3 minute read
Co-authored by: Iris Groenendijk and Lilian Retel
Priorities
It was over a year and a half ago, in January 2023, that the Finance Committee last debated Customs. This long interval is partly due to political developments, such as the fall of the cabinet and subsequent elections. Yet it also seems that this important government service is not high on the priority list of political The Hague. This is evidenced by the low turnout at the debate; only four MPs were present. But of course, the real value of such a debate lies in the substantive discussions that were held.
More than Crime Control
What questions were submitted in advance, what did the Chamber members raise for discussion, and what was the State Secretary's input? In her introduction, the new Secretary of State for Surcharges and Customs, Ms. Achahbar, emphasised Customs' diverse range of duties. Among other things, she described monitoring and stopping unwanted goods, combating undermining activities, and filling the Dutch treasury.
Despite this extensive introduction by the state secretary, Customs' logistical tasks seemed to be somewhat of an understudy in the debate. It was noticeable that MPs mainly showed interest in the role Customs plays in fighting drug crime. MPs repeatedly asked for more information about the handling of "outliers" in the ports and the aftercare that results from that—issues that actually fall under the Ministry of Justice. While it's understandable that crime-related topics generate more public interest, it's crucial for the logistics sector that technical aspects of Customs operations receive equal attention.
Government program
It is extraordinary that Customs' logistics tasks were not prominently featured in a debate in which three coalition parties were present. This is in sharp contrast to the Coalition Program, which emphasises precisely how crucial efficient goods movement is for the Dutch economy.
"Especially for a trading country like the Netherlands, the importance of efficient and secure circulation on the road, rail and waterways is enormous. This is vital for the business climate and earning capacity of the Netherlands. In particular, this applies to the connections to and from our main ports such as our harbors and Schiphol Airport."
This quote primarily addresses infrastructure, but which government agency plays an important role in the flow of goods through the Netherlands? Indeed, Customs.
One bright spot: Still logistical questions
Finally, two questions were raised during the debate about upcoming new legislation, the UCC Reform. The first was about the introduction of the Trust & Check-trader status and its potential impact on small and medium-sized enterprises (SMEs). The secretary of state indicated that this system is a high priority and that negotiations on the new Union Customs Code (DWU) are still ongoing. Although this topic may be less recognisable to the broader public, it is of great importance to Dutch businesses.
Another significant issue discussed was the policy of specific permits enforced by Dutch Customs. Due to the way they enforce value and quantity violations, businesses can face unexpected after-tax bills, sometimes years later. Politicians speak of a certain harshness from Customs and call for a human touch. Although this problem is recognised, the State Secretary indicated that prevention remains central and that Customs will provide as much customisation as possible within the legal framework.
Nevertheless, the Netherlands, which in 2023 was both the fourth largest importing and exporting country in the world and which, with Rotterdam, has the largest port in Europe, must pay more attention to Customs' broad range of tasks. In the coming years, we face challenges such as the reform of the Union Customs Code and an increasing number of other tasks due to new European legislation. It is imperative that the business community, Customs, and politicians in The Hague collaborate effectively to navigate these challenges. Only through such cooperation can we ensure that the Netherlands maintains its position as a global trade leader while upholding the highest standards of security and efficiency in its customs operations.
