backOn 26 March 2026, the Council of the European Union (“Council”) and the European Parliament (“Parliament”) reached a political agreement (“Agreement”) on a comprehensive overhaul of the EU customs framework.1See Council press release “EU customs: Council and Parliament agree on landmark reform” dated 26 March 2026, available here; see Parliament press release “Deal reached on Union Customs Code reform” dated 26 March 2026, available here; see Commission press release “Commission welcomes historic agreement to reform EU Customs Union” dated 26 March 2026, available here and “Questions and answers on the EU Customs Reform dated 26 March 2026, available here. Described by the European institutions as “the most significant reform since the creation of the EU Customs Union in 1968,” the agreement brings to a close a nearly three-year legislative process that began when the European Commission (“Commission”) tabled its proposals in May 2023. The reform aims to modernize customs controls, tighten oversight of rapidly growing e-commerce imports, harmonize risk management across EU Member States, and strengthen the European Union’s capacity to prevent non-compliant, dangerous, or unsafe goods from entering the EU market.
While the text of the Agreement is not yet available, the Agreement is built around four principal elements: (i) the establishment of a new EU level customs authority; (ii) the creation of a centralized EU Customs Data Hub; (iii) new measures targeting the e-commerce sector; and (iv) the introduction of a Trust and Check regime.
New EU Customs Authority
At the center of the Agreement is the establishment of a new EU Customs Authority (“EUCA”), which will be headquartered in Lille, France. The EUCA will serve a coordinating function within the EU customs framework, with a mandate to improve cooperation, consistency, and enforcement across EU Member States. In particular, the EUCA will be responsible for managing the new EU Customs Data Hub and for coordinating risk assessment and control priorities at EU level.
While national customs authorities will remain responsible for applying customs rules and conducting domestic controls, the creation of the EUCA is expected to bring a greater degree of harmonization across the bloc. This may reduce differences in interpretation and practice between EU Member States, but it is also likely to limit the scope for national flexibility and increase the risk that compliance issues identified in one jurisdiction are escalated or acted upon across multiple EU Member States simultaneously.
EU Customs Data Hub
The Agreement introduces a centralized EU Customs Data Hub, intended to replace the fragmented customs IT systems and interfaces currently used across EU Member States. The Customs Data Hub will function as a single online environment through which businesses will submit customs and product-related information. The centralization of data will give customs authorities a comprehensive and real-time overview of supply chains and goods movements, strengthening their risk analysis and control capabilities. For companies, the EU Customs Data Hub represents a shift towards continuous data driven customs oversight, with greater visibility of inconsistencies in valuation, origin, classification and product information across different EU Member States.
The roll out of the EU Customs Data Hub will be phased. It is scheduled to become operational for e-commerce goods from 1 July 2028. It will then be opened on a voluntary basis to other traders from 2031, before becoming the single mandatory point of entry for all EU customs formalities by 2034.
E-Commerce Measures
The Agreement imposes new obligations on e-commerce platforms and sellers engaged in distance sales of goods from non-EU countries directly to EU consumers. Under the new framework, e-commerce platforms and sellers will be treated as the “importer.” As a result, e-commerce platforms and sellers will become responsible for submitting accurate customs data, paying or guaranteeing applicable duties and fees, and ensuring compliance not only with customs requirements but also with EU product and safety legislation. Platforms and sellers will be required either to be established in the EU or to appoint an EU based representative holding Authorized Economic Operator (“AEO”) status or equivalent trusted trader status, which is a measure intended to discourage the use of shell entities and improve accountability.
To encourage logistics models that facilitate effective customs controls, the Agreement also incentivizes non EU sellers and platforms to operate warehouses within the EU. Intra EU shipments from such facilities may benefit from reduced handling fees, provided that the goods are imported in collective consignments and volumes sufficient to allow efficient processing.
The reform provides for the elimination of the existing €150 duty-free threshold for low-value parcels. Pending full implementation of the EU Customs Data Hub to permit applying a standard common customs tariff, the EU will rely on interim measures to address the high volume of low-value e-commerce parcels. From 1 July 2026, a flat-rate customs duty of €3 will apply to items valued below €150. In addition, a separate handling fee will be imposed on each individual parcel entering the EU and sent directly to EU consumers. The handling fee will be paid by the same entity responsible for paying other customs charges for the parcel, so as to avoid shifting the cost to consumers. The level of the fee will be set by a future European Commission delegated act and will be reassessed every two years, with EU Member States required to begin collecting the fee no later than on 1 November 2026.
Trust and Check Regime
The Agreement introduces a new “Trust and Check” regime for companies that meet strict compliance standards and agree to a high degree of transparency, including granting customs authorities access to relevant electronic systems. Under the “Trust and Check” regime, companies may benefit from fewer physical checks and greater flexibility in the timing of duty and fee payments. The existing AEO qualification will remain in place so that smaller or less complex businesses can still access customs facilitations without having to meet the more demanding requirements of the new regime. This said, the Trust and Check regime is likely to favor a relatively small group of well organized and -resourced traders, with more limited benefits and potential operational and competitive disadvantages for businesses that are unable or unwilling to meet the enhanced transparency requirements, including from a cost perspective.
Next Steps
The provisional agreement still needs to be formally approved by the Council and the Parliament before it can enter into force. Prior to formal adoption, the legislative text will undergo legal-linguistic revision (so-called “legal scrubbing”), a process that could take several weeks given the scale of the legislation. The Council and Parliament will also continue work to finalize certain technical aspects of the package ahead of final adoption. The new customs legislation will come into full application 12 months following its publication in the EU’s Official Journal.