Open topic on better customs and supply chain security

Grant Purpose and Target

• Core Objective: This grant aims to fund innovative projects that improve customs and supply chain security. The primary goal is to enhance the prevention, detection, deterrence, and response to illegal activities involving goods crossing EU external borders, while ensuring trade flows are not unnecessarily disrupted.
• Funding Organization: European Commission, under the Horizon Europe framework.
• Target Recipients: The call is open to any legal entity, but consortia must include at least two Customs Authorities from different EU Member States or Associated Countries. Participation of Police Authorities, Border Guards, and/or Coast Guards is also welcome, alongside technology providers, research organizations, and other relevant stakeholders.
• Sector Focus: SECTOR-SPECIFIC, with a primary focus on security, border management, customs, logistics, and supply chain integrity. It involves the development and application of technologies for detection, surveillance, and data analysis.
• Geographic Scope: Proposals must be submitted by a consortium of at least three legal entities from three different countries, with at least one from an EU Member State and two others from different EU Member States or Associated Countries.
• Key Filtering Criteria: This is an Innovation Action (IA) targeting a Technology Readiness Level (TRL) of 6-7 by the project's end. The funding model is a Lump Sum, with an expected project budget of approximately €3 million. A consortium including at least two Customs Authorities is mandatory.

Financial Structure

• Funding Model: This grant is awarded as a Lump Sum. The EU contribution is a fixed amount agreed upon upfront. Payments are tied to the successful completion of work packages as defined in the Grant Agreement, not to the reporting of actual incurred costs.
• Funding Range: The Commission expects to fund projects with an EU contribution of approximately €3,000,000. The total indicative budget for the topic is €9,000,000, with an expectation to fund 3 projects.
• Co-financing (Funding Rate): As an Innovation Action, the lump sum is calculated based on an underlying funding rate of 70% of total eligible costs for for-profit legal entities. Non-profit legal entities are eligible for a rate of up to 100%.
• Eligible Costs: Costs are determined during the proposal stage through a detailed budget table. All costs necessary for the project (personnel, travel, equipment, subcontracting, etc.) that comply with Horizon Europe rules can be included in the estimated budget for the lump sum calculation. The 25% flat rate for indirect costs is included in the lump sum calculation.
• Financial Support to Third Parties (FSTP):
  • Beneficiaries are required to provide financial support to third parties in the form of grants. These grants are intended for additional practitioners, specifically national Customs Authorities, to support testing and validation activities.
  • The maximum amount that can be granted to a single third party is €100,000.
  • Proposals must allocate between 5% and 20% of their total requested EU funding for this purpose.
• Ineligible Costs: Standard Horizon Europe ineligibility rules apply during the budget estimation (e.g., deductible VAT, interest owed). These costs should not be included in the detailed budget table.
• Payment & Reporting: Payments are disbursed as lump sum installments. An initial pre-financing is typically provided. Subsequent payments are triggered by the completion of work packages outlined in periodic reports, which focus on technical progress rather than detailed financial expenditure.

Eligibility Requirements

Formal Criteria

• Consortium Composition: A consortium must consist of at least three independent legal entities established in three different eligible countries. At least one of these must be from an EU Member State, and at least two others must be from different EU Member States or Associated Countries.
• Mandatory Practitioner Involvement: As a specific condition for this topic, the consortium must include at least 2 Customs Authorities from at least 2 different EU Member States or Associated Countries as beneficiaries. Applicants must provide details for these practitioners in the 'Information about security practitioners' annex of the application.
• Use of EU Space Programme: If projects use satellite-based data for earth observation, positioning, navigation, or timing, they are required to use data and services from Copernicus and/or Galileo/EGNOS.

Organizational Status

• The call is open to any legal entity (e.g., public bodies, private for-profit companies including SMEs, research and technology organizations, non-governmental organisations) established in an eligible country.
• Hungarian public interest trusts established under Hungarian Act IX of 2021 (and entities they maintain) are not eligible to receive funding.

Technical Expertise

• Consortia should demonstrate expertise relevant to the project's scope, which may include customs operations, supply chain security, detection technologies (e.g., for CBRN-E, illicit drugs), data analytics, cybersecurity, and border management systems.
• Participation of Police Authorities, Border Guards, and/or Coast Guards is welcomed to ensure the solutions meet operational needs.

Exclusion Criteria

• Geographic Exclusions: Legal entities established in Russia, Belarus, or non-government controlled territories of Ukraine are not eligible to participate in any capacity. Legal entities established in China are not eligible to participate in Innovation Actions.
• Communication Network Restrictions: The topic is subject to restrictions for the protection of European communication networks. Entities assessed as 'high-risk suppliers' of mobile network communication equipment are not eligible to participate.
• Sanctions: Entities subject to EU restrictive measures (sanctions) are not eligible to participate.

Application Practical Information

• Deadlines:
  • Call Opening: 12 June 2025
  • Submission Deadline: 12 November 2025, 17:00 Brussels time (CET).
• Required Documents:
  • Application Form (Part A & B): Submitted electronically via the portal.
  • Detailed Budget Table: A mandatory annex for calculating and justifying the lump sum.
  • Information on Security Practitioners: An annex to be completed for the mandatory Customs Authority partners.
  • Plan for Exploitation and Dissemination: A summary of planned activities must be included in the proposal.
• Application Process: This is a single-stage call. Proposals must be submitted electronically through the EU Funding & Tenders Portal before the deadline.
• Support Offered: The primary support is financial, provided as a lump sum grant. Applicants can also access support from National Contact Points (NCPs) and the Enterprise Europe Network (EEN).
• Post-Award Obligations:
  • Mid-term Assessment: Projects must deliver an assessment of their mid-term outcomes, performed by the practitioners involved in the consortium.
  • TRL Progression: Projects are expected to achieve a Technology Readiness Level (TRL) of 6-7 by the project's conclusion.
  • Reporting: Beneficiaries must submit periodic reports on the technical progress and completion of work packages to trigger lump sum payments.

Evaluation Criteria

Proposals will be evaluated based on the standard criteria for Horizon Europe Innovation Actions, with a special weighting for the 'Impact' criterion.

Scoring Factors

• Excellence (Threshold: 3/5): Evaluates the clarity and ambition of the project's objectives and the soundness of the proposed methodology.
• Impact (Threshold: 3/5, Weighting: 1.5): Assesses the credibility of the project's contribution to the expected outcomes and impacts specified in the work programme, as well as the quality of dissemination and exploitation plans.
• Quality and Efficiency of the Implementation (Threshold: 3/5): Judges the quality of the work plan, risk assessment, and the appropriateness of the resources and consortium expertise.
• Overall Threshold: An overall score of 10/15 is required to be considered for funding.

Innovation & Impact

• Proposals must clearly demonstrate how they will contribute to improving customs and supply chain security through enhanced prevention, detection, and deterrence of illegal activities.
• The novelty and ambition of the solution beyond the current state-of-the-art is a key aspect.
• A credible dissemination and exploitation plan is required to show how project outcomes will be maximized, including communication activities to reach relevant stakeholders.
• Proposals should convincingly explain how they build upon, and do not duplicate, work from previous related Horizon Europe calls.

Project Quality

• The methodology must be sound, including the underlying concepts and inter-disciplinary approaches. The quality of open science practices (e.g., data management) will be assessed.
• The work plan must be effective and well-structured, with a clear allocation of tasks and resources across work packages.
• A thorough risk assessment and mitigation plan is necessary.
• The consortium as a whole must possess the necessary expertise, and the roles of each participant must be clearly defined and relevant.

Strategic Fit

• Projects should align with EU policy objectives such as the Pact on Migration and Asylum, the Multiannual Strategic Policy for European Integrated Border Management, and the EU Customs reform.
• Alignment with the Capability Roadmap of the European Border and Coast Guard (Frontex) is highly desirable, and proposals should explain how they contribute to its mid- and long-term perspectives.

Cross-cutting Themes

• Human Rights & Ethics: Proposals must integrate perspectives on safeguarding and promoting human rights and include inputs from legal and ethical experts.
• Cybersecurity: The cybersecurity of the proposed technology and associated communication systems must be considered.
• Environmental Impact: Solutions contributing to a lower environmental footprint, better energy-efficiency, and cost-efficiency are welcomed.
• Gender Dimension: The integration of sex and gender analysis is only required if it is relevant to the objectives of the research.

Compliance and Special Requirements

• Regulatory Compliance: Projects must adhere to all applicable EU and national laws. This includes, but is not limited to, the General Data Protection Regulation (GDPR), the EU AI Act, and fundamental human rights principles. A mid-term deliverable assessing project outcomes by practitioners is a specific requirement.
• IP Policy: Standard Horizon Europe rules on Intellectual Property apply. Results are owned by the beneficiaries that generate them. Beneficiaries must grant access rights to each other for the purpose of the project. The European Commission receives a right of use for its communication and policy activities.
• Unique Aspects:
  • Lump Sum Funding: This model simplifies financial management by removing the need for detailed cost reporting during the project. The focus is on technical execution and completion of work packages.
  • Mandatory Financial Support to Third Parties (FSTP): Consortia must design and manage a process to award grants (up to €100,000 each) to additional Customs Authorities, allocating 5-20% of the total EU funding for this.
  • Security Sensitivity: As a security-focused topic, projects may involve handling sensitive or EU Classified Information (EUCI), which would trigger specific security obligations and procedures as outlined in the grant agreement.
• Industry-Specific Rules: The topic is subject to 'restrictions for the protection of European communication networks', which may exclude certain entities from participation.