The EU’s customs reform heralds a new era for customs in Europe

The EU customs reform has come into force, marking the start of a better, smarter and simpler customs system across the EU. Following its formal adoption by the Council of the European Union and the European Parliament, the reform was published in the Official Journal on 19 September and will be phased in from 21 September.

The reform will modernise the EU’s customs system, making it more digital, data-driven and responsive to the growing challenges of international trade. This will help EU customs authorities to address evolving geopolitical risks, the rapid expansion of e-commerce and the growing demand for consumer protection. At the heart of the reform lies a modernised Union Customs Code (UCC) and the creation of the EU Customs Authority (EUCA).

A new Union Customs Code

The new UCC Regulation, published on 19 September, forms the legal basis for the EU’s customs reform. It recasts the legal framework governing customs operations across the EU, creating a more integrated system and helping the Customs Union to function as a single entity. The new Code will modernise customs procedures, harmonise processes, reduce the administrative burden and strengthen risk management. This means that, ultimately, there will be a single customs entry point for all customs operations across the EU, rather than multiple national systems.

Customs is a strategic pillar for the EU’s competitiveness and economic security. It helps to protect the single market, enforce European rules and facilitate legitimate trade. The reform will strengthen the role of customs authorities in the collection of customs duties, as well as in ensuring compliance with the EU’s non-fiscal rules, such as product safety, environmental standards and intellectual property rights. Customs procedures and requirements will be simpler and more predictable for legitimate businesses. There will also be clearer responsibilities for importers, and reporting will be streamlined through a single EU data interface. Trusted traders will benefit from significantly simplified procedures.

A new data-driven customs architecture

The EUCA, based in Lille, was legally established on 20 September. The new Authority will strengthen cooperation between Member States’ customs authorities by enabling EU-wide risk management and supporting a more coherent response to common threats at our borders. A key task for the EUCA will be to develop the EU Customs Data Centre, which will transform the currently fragmented customs IT systems. The new business-centred approach will create a single EU trade interface for EU imports and exports, as well as for all information exchanges and procedures with customs authorities. The Data Centre will gradually replace the existing national customs IT systems, generating savings of around €2,300 million a year in operational costs for Member States and €2,580 million a year in administrative costs for economic operators.

The EU Customs Data Hub will be operational for e-commerce from July 2028. For all other trade, the Data Hub will be operational by 2031 at the latest.

Together, the UCC Regulation, the Data Hub and the EUCA will support better cooperation between European and national authorities, in particular tax and market surveillance authorities, and will provide a mechanism for dealing with emergency situations at the border.

New rules for e-commerce

The reform is already delivering results where they are most urgently needed, by responding decisively to the influx of low-value e-commerce imports. In December 2025, the EU decided to abolish the outdated €150 duty-free threshold for low-value consignments and, instead, introduce a temporary customs duty of EUR 3 from 1 July 2026 until July 2028, after which standard customs duties will apply. The new UCC Regulation also established an EU-wide processing fee for small parcels to cover the rising costs faced by customs authorities when processing these low-value goods. The EU will begin applying this from November 2026 at a fixed rate, to be set out in a delegated act of the Commission.

Next steps

With the new publication of the UCC in the Official Journal, the legislative process has been completed. Implementation will now take place gradually, and Member States will have twelve months to fully implement the new rules. The EU Customs Authority is expected to become operational in 2027, whilst the EU Customs Data Centre will be mandatory for e-commerce consignments from 1 July 2028. The new handling fee is expected to come into effect from November this year.

Background

The EU Customs Union, established in 1968, was a milestone in EU integration, as it laid the foundations for the single market and ensured the free movement of goods within the EU.

In the current climate, customs authorities process billions of consignments a year, and e-commerce is fuelling an unprecedented rise in low-value imports. The EU Customs Union needed major reform to address modern challenges, such as new business models and growing trade volumes, technological advances, the green transition, the new geopolitical context and security risks.

On 17 May 2023, the Commission presented proposals for a comprehensive reform aimed at addressing these challenges by developing a more cohesive, data-driven and risk-based customs system. This system is also designed to effectively protect the EU’s financial and regulatory interests.

 

More information: European Commission