The EU Customs Union currently deals with trade worth €4.3 trillion ($4.9 trillion) a year (about 14 percent of global trade). In 2024, 2,140 customs offices across the trading bloc collected almost €27 billion ($31 billion) in customs duties and dealt with 1.37 billion items.
“Today’s agreement marks the greatest reform since the creation of the Customs Union in 1968,” said Makis Keravnos, Minister of Finance of the Republic of Cyprus, in a press release on March 26. “The new Union customs code will allow us to deal with the multiple challenges prompted by the new geopolitical realities, while ensuring economic security. Once adopted, this modern toolbox will facilitate trade and ensure the proper collection of duties, in a simplified manner, and with the required legal certainty.”
The Customs Authority will be responsible for identifying priority control areas and risk criteria. It will oversee the Customs Hub and will analyze the latest import and export data to identify risky cargo that should be inspected. It will also coordinate customs crisis management across the EU member states.
Dirk Gotink, EU rapporteur, said in a press release on March 26, “The new rules address the explosive growth of e-commerce: last year, 5.8 billion low-value parcels entered the EU.”
He explained that there are four core pillars to the reforms: “e-commerce traders become responsible for goods that they send to consumers, a new levy to cover increased processing costs for our customs, a central EU Customs Authority, and an EU Data Hub to provide a real-time and integrated overview of the flows of goods. Platforms that structurally fail to comply with our rules will be penalized,” he promised.
Streamlined data
The Data Hub will provide a single online environment, replacing 111 separate technology systems, which will collect data needed to smooth the flow of goods into and out of member states. It will provide the data required by the Customs Authority for research and to improve risk management.
Companies importing to, and exporting from, the EU should find that compliance burdens are eased because they will need to submit information only to this portal – instead of submitting to one or more of 27 separate EU member state customs authorities. They will be able to input the same information for multiple consignments.
The Hub will become operational for e-commerce goods on July 1, 2028.
Trusted traders regime
Businesses that fulfill the highest transparency requirements will benefit from streamlined customs obligations – with those that are deemed most trustworthy allowed to import their products with no active customs interventions.
A “trust and check” regime will require importers to undergo initial vetting and to allow customs authorities access to their digital systems. In return, they will enjoy fewer customs checks on their goods and flexibility over payments of duty and fees.
E-commerce clampdown
However, there will also be a new handling fee for every item entering the EU being sent directly to a consumer. This will be paid by the party responsible for customs duties and will be applied by member states from no later than Nov. 1 this year.
For this purpose, e-commerce platforms will be viewed as importers, so they will be responsible for all customs duties and data requirements (and for ensuring that goods comply with EU laws). The end-customer will not be liable.
Sellers and platforms that facilitate distance trade into the EU from non-EU jurisdictions must be either established in the EU or have an authorized economic operator (AEO) in the EU, or enjoy “trusted trader” status.
There will be financial penalties of up to 6 percent of the total value of goods imported into the EU over the previous 12 months for those that do not comply. Persistent offenders could have their AEO revoked and be flagged as “high risk” operators.
Non-EU country sellers and platforms will be encouraged to operate warehouses in the EU. Businesses that do this and import in large quantities will also benefit from lower handling fees on intra-EU member state shipments.
Data-driven oversight
Nicola Passariello, industry practice lead for compliance and third-party risk management at Moody’s, said the selection of Lille as the headquarters of the EU Customs Authority is another important step in strengthening the EU’s commitment to more harmonized, data‑driven customs oversight.
“By centralizing risk analysis and strengthening information‑sharing, the Authority is expected to enhance the EU’s ability to tackle trade‑based financial crime, customs fraud and supply‑chain disruptions,” he explained. “These changes may gradually influence how member states supervise cross‑border trade and apply analytical tools to protect fiscal revenues and economic security.”
While some of these changes will be phased in over several years, the intentions are clear and compliance teams should start preparing now if they wish to enjoy the compliance benefits.
