Rotterdam school of Management, Erasmus University compact logo

Article: Friday, 18 October 2024

The European Union has manifested itself as a regulatory superpower in recent years. Many pieces of regulation that aim to address societal challenges –  reducing emissions, getting rid of child and slave labour, or barring access to the EU markets for products associated with deforestation – have been created. While these developments are absolutely positive from a societal point of view, they create two categories of challenges, says  Professor Albert Veenstra in this blog post. Prof. Veenstra is Professor of Trade and Logistics at RSM.

The first of these two challenges is that companies that are looking to be compliant with this type of regulation are dealing with the way this regulation works in their supply chain. It forces companies to look deep into their supply chain, identify all parties involved, and impose certain rules on these parties. Some regulation, such as the EU Deforestation Regulation, requires information to be collected at the very start of the supply chain: from farmers, plantations, and forests outside of the EU. For many products, there may be many parties in between those at the beginning of the supply chain and the party that brings the goods into the EU market. Setting compliance standards across multiple segments of a supply chain turns out to be very difficult for many companies. 

The second challenge is that this type of regulation requires supervision by government agencies. The standard model in much of the new regulation seems to be that the supervision is shared by two ‘competent’ authorities: product or topic specialist agencies, and customs agencies.

Apart from the relationship between these two agencies, it is still unclear if these regulatory efforts create new responsibilities for customs agencies that already typically have far-reaching enforcement powers at borders. In addition, customs agencies have an enforcement role in collecting certain taxes and duties. To do this, they have formal access to information from shipments (via declarations), but can also offer companies the possibility of suspending or postponing paying these duties for a while.

The new regulation seems to create responsibilities for customs agencies that are somewhere in between these two clearly defined roles. This is forcing both the policymaker for customs in the EU – the Directorate-General Taxation and Customs Union (TAXUD) – as well as many of the Member States’ customs organizations to re-imagine their future role. A customs reform process is currently underway in the EU. But it is unclear if customs agencies will be able to successfully fulfil some of the new tasks that are allotted to them. 

The above discussion makes it evident that the long-term consequences of this new EU regulation can only be investigated properly through a multi-disciplinary lens that is based – at the very least – in both legal and supply chain knowledge. It is this type of multi-disciplinary knowledge that we try to maintain and transfer to professionals at RSM through our custom programmes.

If you enjoyed reading this, why not find out more about our tailored education programmes that enable organisations to develop their own customs and supply chain compliance? See our webpages to find out more

dr. A.W. (Albert) Veenstra
Professor of Trade and Logistics
Rotterdam School of Management (RSM)
Erasmus University Rotterdam
Photo
Albert Veenstra

Related articles

RSM Discovery

Want to elevate your business to the next level using the latest research? RSM Discovery is your online research platform. Read the latest insights from the best researchers in the field of business. You can also subscribe to the newsletter to receive a bimonthly highlight with the most popular articles.

Do you want to learn more about this subject?

Check out these RSM education programmes

Beyond HR: People, Culture and Transformation
Beyond HR: People, Culture and Transformation
  • 2 Jun 2025
  • 3 days
  • 3,700
Leading with Decision-Driven Analytics
Leading with Decision-Driven Analytics
  • 1 Apr 2025
  • 3 days
  • 3,500
Strategic Account Management
Strategic Account Management
  • 12 Mar 2025
  • 3 days
  • 4,000
The Challenge of Leadership
The Challenge of Leadership
  • 18 Mar 2025
  • 4 days
  • 6,600
Leading Change
Leading Change
  • 24 Mar 2025
  • 3 days
  • 4,000
Design Thinking
Design Thinking
  • 7 May 2025
  • 6 weeks
  • 1,300
Make Strategy Work
Make Strategy Work
  • 6 May 2025
  • 3 days
  • 3,900
Diploma Programme in General Management
Diploma Programme in General Management
  • 17 Mar 2025
  • 1 year
    • €13,100 -
    • €15,500 depending on modules chosen *
    • * see details on the page
Leading with Presence
Leading with Presence
  • 30 Jan 2025
  • 2 days
  • 2,600
Effective Negotiating Skills
Effective Negotiating Skills
  • 4 Feb 2025
  • 3 days
  • 3,950
Storytelling for Business Success
Storytelling for Business Success
  • 13 March 2025
  • 2,600
Team Leadership
Team Leadership
  • 17 Mar 2025
  • 3 days
  • 3,900
Essentials of Leadership
Essentials of Leadership
  • 3 Mar 2025
  • 3 days
  • 3,800
Women in Leadership
Women in Leadership
  • 3 Mar 2025
  • 2 days
  • 1,950
Leading the Energy Transition
Leading the Energy Transition
  • 23 Jun 2025
  • 5 days
  • 6,500
Innovation Management
Innovation Management
  • 19 May 2025
  • 3 days
  • 4,000
MSc Marketing Management
MSc Marketing Management
  • 12 months
    • €2,530 (EEA)*|
    • €22,500 (Non-EEA)
    • *see details on page
Navigating Power Dynamics
Navigating Power Dynamics
  • 19 Dec 2024
  • 2 days
  • 3,100
Project Management in Practice
Project Management in Practice
  • 16 Dec 2024
  • 3 days
  • 3,300
Strategic Problem Solving
Strategic Problem Solving
  • 2 days
  • 2,700
Your contact for more information:
Danielle Baan

Science Communication and Media Officer

Portrait of Erika Harriford-McLaren
Erika Harriford-McLaren

Corporate Communications & PR Manager

Erasmus University campus in autumn, showcasing its iconic red trees, viewed from across the campus pool.