Last week, the EU announced that it has reached political agreement on the reform of the EU Customs Union, representing the most significant overhaul of the EU customs legal framework since the establishment of the Customs Union in 1968. It was also announced that Lille (France) will host the new EU Customs Authority.
Reform of the EU Customs Union
The European Commission proposed a comprehensive reform of the EU Customs Union in 2023 in response to the large increase in trade volumes, in particular from e-commerce sales, which created significant administrative burden for Member States’ customs authorities. The reform aims to safeguard the EU’s Single Market and boost and strengthen Europe’s competitiveness and economic security. The European Council and the European Parliament have now agreed on legislation for the following measures:
- the creation of a centralised EU customs data hub, which will replace the national customs IT systems with a central platform for importers and exporters to interact with for the purposes of complying with customs obligations in the EU. The EU customs data hub is aimed at strengthening data-sharing across Member States to enhance customs controls and real-time risk analysis;
- the introduction of enhanced customs simplifications for “Trust and Check Traders”, to reduce time and costs associated with customs compliance;
- the implementation of an EU-wide handling fee for small parcels entering the EU, to assist with cost of monitoring the increasing volume of small parcels entering the EU. This fee will be applied no later than 1 November 2026; and
- the establishment of the new EU Customs Authority, which will oversee coordination and risk management across the Customs Union.
The agreed legislative instrument(s) for the reform have not been published yet.
The reform will also significantly change the treatment of e-commerce imports, by deeming online platforms (selling into the EU) to be the importer of record and therefore responsible for customs duties and regulatory compliance.
The EU-wide handling fee to support customs authorities is a different measure to the flat-rate €3 customs duty per item on low-value imports. The flat-rate €3 customs duty per item was agreed by the EU in February 2026 and is a temporary measure, until the implementation of the EU’s customs reform. The measure eliminates the previous duty-free treatment of low-value consignments (value of less than €150) imported from outside the EU. The flat-rate €3 custom duty will apply from 1 July 2026.
The EU Customs Authority
The establishment of the EU Customs Authority (EUCA) forms part of the EU’s overall customs reform. Following a selection process involving nine Member States’ applications, the European Council and the European Parliament have selected Lille (France) as the host city for the EUCA. The EUCA will be a decentralised EU agency to support the work of national customs authorities, by analysing data contained in the new EU customs data hub, identifying priority control and risk areas and coordinating EU-level crisis management. The location of the EUCA in Lille and the date on which the EUCA will commence operations, will be included in the overall customs reform legislation, which is subject to formal adoption by the Council and the Parliament.
Next steps
The agreed legislative package is subject to formal adoption by the European Council and the European Parliament (the co-legislators). Once enacted, the legislation will apply after the transition period.
What this means for your business
The reforms will have significant implications for businesses engaged in cross-border trade, particularly in the e-commerce sector and businesses which have complex supply chains. Businesses and platforms will need to adapt to new data submission requirements and changes to importer obligations. However, it is expected that submissions to the EU Customs Data Hub (rather than different Member States customs authorities) will reduce administrative burden for importers and exporters, over time. Platforms facilitating e-commerce, particularly non-EU sellers, will need to consider their obligations under the reforms.
Contact Us
If you have any questions about how the EU’s customs reform will affect your business or need guidance on preparing for the changes, please contact Matthew Broadstock or Dara Higgins from Matheson’s Customs and Trade Law Team or your usual Matheson contact.