The Council and Parliament have approved an overhaul of the EU customs framework, equipping the Union with more modern tools to address trends such as the rapid growth of trade volumes, particularly e-commerce, the increasing number of EU standards requiring border controls, and the complex geopolitical environment.
This reform introduces innovative new instruments to facilitate global trade, optimize the collection of customs duties, and strengthen controls on non-compliant, dangerous, or non-conforming goods. Overall, the new system will enable more rigorous controls without placing an excessive burden on authorities and economic operators..
Key Features of the Proposals
The reform aims to address the current pressures on EU customs, including the sharp increase in trade volumes, particularly e-commerce, the rapid proliferation of EU standards to be checked at borders, and the evolving geopolitical context marked by crises.
The proposed measures present an innovative, data-driven vision for EU customs, which will significantly simplify customs procedures for businesses, especially the most trusted operators. As part of the digital transformation, the reform will reduce red tape by replacing traditional declarations with a smarter, data-driven approach to import control. At the same time, customs authorities will have the necessary tools and resources to effectively assess and block imports that pose real risks to the EU, its citizens, and its economy.
A new EU customs authority will oversee an EU customs data center, the driving force behind the new system. Ultimately, this data center will replace Member States’ existing customs IT infrastructure, enabling them to save up to €2 billion annually in operating costs. The new authority will also contribute to the implementation of an improved European approach to customs risk management and control.
More broadly, this new framework will allow EU customs to adapt to a greener and more digital era and contribute to a safer and more competitive single market. It simplifies and streamlines customs declaration obligations for economic operators, notably by reducing import processing times, providing a single EU-wide interface, and facilitating data reuse. It thus contributes to President von der Leyen’s objective of reducing these burdens by 25%, without compromising the underlying policy objectives.
The Three Pillars of EU Customs Reform
A New Partnership with Businesses
Under the reformed EU Customs Union, businesses wishing to import goods will be able to register all information relating to their products and supply chains in a single online environment: the new EU Customs Data Portal. This cutting-edge technology will compile the data provided by businesses and, through machine learning, artificial intelligence, and human intervention, will offer authorities a 360° view of supply chains and the movement of goods.
At the same time, businesses will only need to interact via a single portal to submit their customs information and will only have to submit the data once for multiple shipments. In certain cases where business processes and supply chains are fully transparent, the most trusted operators (“Trust & Check operators”) will be able to put their goods into circulation in the EU without any customs intervention. The Trust & Check category strengthens the existing Authorized Economic Operator (AEO) scheme for trusted operators.
This new partnership with businesses is a world first. It provides a powerful tool to support businesses, trade, and the EU’s open strategic autonomy. The EU Customs Data Portal will allow goods to be imported into the EU with minimal customs intervention, without compromising safety, security, and anti-fraud requirements.
According to the proposals, the portal will be open to e-commerce shipments in 2028 and then (on a voluntary basis) to other importers in 2032, resulting in immediate benefits and simplifications. Trust & Check operators will also be able to clear all their imports through the customs authorities of the Member State where they are established, regardless of the point of entry of the goods into the EU. A review in 2035 will determine whether this possibility can be extended to all operators when the portal becomes mandatory from 2038.
A Smarter Approach to Customs Controls
The proposed new system will provide customs authorities with a comprehensive view of the supply chains and production processes of goods entering the EU. All Member States will have access to real-time data and will be able to share information to respond more quickly, consistently, and effectively to risks.
Artificial intelligence will be used to analyze and monitor data and anticipate problems even before goods begin their journey to the EU. This will allow EU customs authorities to focus their efforts and resources where they are most needed: preventing dangerous or illegal goods from entering the Union and enforcing the growing number of EU laws prohibiting certain goods that run counter to shared EU values—for example, in the areas of climate change, deforestation, and forced labor, to name just a few. This system will also help ensure the proper collection of duties and taxes, benefiting both national and EU budgets.
To help Member States prioritize risks and coordinate their controls and inspections – particularly during crises – information and expertise will be pooled and assessed at EU level by the new EU Customs Authority, which will use data provided by the EU Customs Data Centre. This new regime will significantly improve cooperation between customs, market surveillance, and enforcement authorities at both European and national levels, notably through information sharing via the Customs Data Centre.
A More Modern Approach to E-commerce
The reform announced today gives online platforms a key role in ensuring that goods sold online within the EU comply with customs obligations. This represents a major shift from the current customs system, which relies on consumers and carriers. Platforms will be responsible for paying customs duties and VAT at the point of purchase, thus preventing consumers from encountering unpleasant surprises such as hidden fees or unexpected paperwork upon receiving their packages. As official importers, online platforms guarantee to European consumers that all duties have been paid and that their purchases are safe and comply with EU environmental, safety, and ethical standards.
At the same time, the reform eliminates the duty-free threshold for goods valued at less than €150. A 2016 study by Copenhagen Economics revealed that postal services failed to collect VAT and import duties on 65% and 50% of the analyzed shipments, respectively, while collection by express carriers reached nearly 100%.
The reform also simplifies the calculation of customs duties for the most common low-value goods purchased outside the EU, reducing the thousands of possible duty categories to just four. This will make it much easier to calculate duties on small parcels, allowing platforms and customs authorities to better manage the billion online purchases entering the EU each year. The system will also reduce the risk of fraud. This new regime, specifically designed for e-commerce, is expected to generate approximately one billion euros in additional customs revenue annually.
The EU Customs Authority
The new, decentralized EU Customs Agency will coordinate the governance of the EU Customs Union in certain areas.
To support the work of national administrations, the EU Customs Authority will analyze constantly updated import and export data available on the new EU Customs Data Portal. This will help identify high-risk goods entering the EU that should be subject to priority control.
The Authority will also help define priority control areas and risk criteria. Finally, it will coordinate customs crisis management at EU level.
The Customs Authority will be located in Lille, France. It will be established on the day the framework regulation enters into force.
EU Customs Data Hub
The EU Customs Data Hub will be a single online environment designed to collect and analyze customs data to ensure the smooth flow of goods within and outside the EU. It will also support EU-wide risk management, under the aegis of the European Customs Authority.
To fulfill their customs obligations, businesses importing and exporting to the EU will only need to submit their customs information once through this single portal, instead of submitting it to 27 different customs administrations. They will be able to enter the same information for multiple shipments, saving them time and money.
National customs administrations will benefit from a comprehensive overview of trade flows and supply chains. With the support of the European Customs Authority, Member States will have access to the same real-time data and will be able to share information to respond to risks more quickly, consistently, and effectively.
Under the agreement, the data hub will be operational for e-commerce goods from 1 July 2028. A phased rollout will extend its scope to all goods movements by 1 March 2034.
Trusted and Checks Traders
The updated legislation creates a new category of particularly transparent businesses: trusted and checked operators.
Under this scheme, businesses providing comprehensive information on the movement and conformity of goods, and meeting other stringent criteria, will benefit from reduced customs obligations, including simplified procedures for temporary warehousing and transit.
The most reliable businesses will be able to move their goods within the EU without customs intervention.
Other businesses will continue to benefit from the simplifications already granted to trusted operators under the existing Authorized Economic Operator (AEO) scheme.
About TDR
Trade Duty Refund helps European and US retail brands mitigate and recover customs duties across complex international supply chains. With expertise in EU, UK and US Duty Refund, Returned Goods Relief, Rex registration,IEEPA tariff recovery, and VAT refunds, we’ve helped clients recover over millions in unclaimed duties. Our mission: turn compliance complexity into competitive advantage.
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