The Italian Government has issued Legislative Decree 141/2024, reorganizing customs regulations and revising the system of tax, administrative, and criminal sanctions.
These are a set of national provisions that complement the Union Customs Code.
In summary, the most significant changes affecting the Italian customs system—aimed at aligning it with European standards—concern:
- The regulatory framework in customs matters;
- The full digitalization of customs procedures and instruments;
- Reforms aimed at ensuring greater transparency and simplification in the procedures for the assessment, verification, and collection of customs duties;
- Enhanced controls by customs authorities and simplification of inspections, including the strengthening of the Customs and Controls Single Window (Sportello Unico Doganale e dei Controlli – SUDOCO) and recognition of its increasingly central role.
The decree also introduces provisions aimed at reorganizing and simplifying the criminal customs sanctions system, as well as streamlining the administrative sanctions framework. It also includes updates in tax-related matters.
Among the new national provisions contained in Annex 1, there is also an update to the procedure for obtaining the license required to practice as a customs broker.
EU CUSTOMS REFORM: EU 2025 VAT AND CUSTOMS REFORM PRIORITIES
The Reform of the Customs Code can therefore be summarized in the following key points:
- Inclusion of VAT among border duties;
- New requirements for the exercise of direct representation;
- Restrictions on the use of the temporary exportation regime;
- Elimination of the temporary importation regime. However, the temporary admission regime for pleasure craft (Article 73) remains unchanged;
- Provisions and onboard equipment are now regulated under a single article, with the repeal of numerous previously applicable rules;
- Tightening of criminal customs sanctions. The sanctioning regime for customs smuggling is extended to violations of the temporary exportation and "special use" regimes, with penalties ranging from 100% to 200% of the customs duties due;
- Smuggling now also applies in cases of omitted or incorrect declarations;
- Revision of administrative customs sanctions.
EU CUSTOMS REFORM: CIRCULAR LETTER PUBLISHED ON THE ITALIAN CUSTOMS
Application guidelines regarding administrative sanctions and confiscation under the new customs provisions introduced by Legislative Decree No. 141/2024 are provided in the Circular of the Customs Agency No. 22/D dated 28/10/2024. This document clarifies that smuggling due to an unfaithful declaration also occurs in cases of incorrect calculation of duties, as well as in instances of erroneous indication of VAT or customs duty elements.
Furthermore, it establishes that, in the case of customs declarations consisting of multiple items, it is necessary to verify whether the total amount of border duties due as a result of the assessment exceeds the amount declared and paid by the party.
For smuggling offenses in which none of the border duties owed exceed €50,000 and no aggravating circumstances are present, the offender may access a provision allowing the offense to be extinguished through the payment of a fine only. This option is not subject to a statute of limitations and can therefore be exercised even while criminal proceedings are pending.
However, Article 112 specifies that the exercise of this option by the offender to extinguish the offense "does not prevent" the Customs Office from proceeding with the confiscation of any goods that have already been seized.
EU CUSTOMS REFORM: ADMINISTRATIVE CUSTOMS SANCTIONS AND VAT H2
The new provisions affecting the criminal and administrative sanctioning system in the field of excise duties have the merit of:
- Introducing a new criminal offense for evasion of assessment or payment of excise duty on manufactured tobacco, and a new administrative offense for the sale of manufactured tobacco without authorization or the purchase from persons not authorized to sell;
- Expanding the scope of confiscation measures, including in relation to more serious offenses involving excise duties;
- Decriminalizing less serious offenses.
Specifically, with regard to the rules concerning evasion of assessment or payment of excise duty on energy products, as set out in Article 40 of the Consolidated Excise Act (TUA), measures have been introduced primarily aimed at, for less serious cases, reducing the scope of criminal penalties and expanding the scope of administrative sanctions, by:
There is also a widening of cases involving corporate criminal liability for administrative offenses arising from crimes related to excise duties.
Further changes have been introduced to the customs regime under Article 42.
This regulation allows exemption from VAT payment for goods originating from non-EU countries that are intended to be transferred to another Member State of the Union for release for consumption there, provided the importer complies with specific reporting obligations.
EU CUSTOMS REFORM: HOW CAN HELP YOU?
The international law firm Arnone & Sicomo has a dedicated department specializing in maritime and customs law, as well as criminal law.
Our clients are primarily individuals or companies whose vessels have been seized due to issues related to non-compliance with customs regulations.
As professionals in the field, we work closely with Customs Offices across Italy, always striving to find what we consider the best possible solution for our clients.
Our criminal law department has years of experience handling criminal proceedings related to the offense of customs smuggling, working in close cooperation with our colleagues from the maritime and customs law team.
Have you had your vessel seized or been reported for customs smuggling?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
