Modernising the EU customs union

The EU's customs reform

The EU is reforming its customs system as increased trade flows, fragmented national systems, the rapid rise of e-commerce and shifting geopolitical realities are putting it under significant pressure.

In May 2023, the European Commission proposed a fundamental reform of the EU customs framework. On 26 March 2026, the Council and the Parliament agreed on new and innovative instruments to facilitate global trade, improve the collection of customs duties and prevent non-compliant, dangerous or unsafe goods from entering the EU.

The agreed reform introduces:

• a new EU customs authority
• an EU customs data hub
• enhanced simplifications for most trusted traders
• a new EU-wide handling fee

• EU customs: Council and Parliament agree on landmark reform (press release, 26 March 2026)

The EU customs authority

The agreement between the co-legislators provides the establishment of a decentralised EU agency - the European Union customs authority (EUCA) - to coordinate and support national customs authorities across the EU.

The new EU customs authority is expected to:

• ensure EU-level risk management
• identify priority control areas and risk criteria
• coordinate crisis management at EU level

EUCA would carry out its tasks using constantly updated import and export data from the EU customs data hub.

At the same time, national customs authorities would continue to conduct their own national risk analyses, tailored to national needs.

EUCA will be based in Lille, and it is expected to have around 250 staff members.

The authority will be established on the day that the overarching regulation enters into force.

• Lille to host the new EU customs authority (press release, 25 March 2026)

An EU data hub for customs

The agreed rules establish a single EU customs data hub, where traders can submit customs and product information through one single online platform.

The EU customs data hub would:

• collect and analyse customs data to ensure the smooth flow of goods in and out of the EU
• provide authorities with shared, real-time data, enabling faster, more consistent and more effective risk management
• reduce administrative burdens for businesses and improve the accuracy of customs processes

Under the terms of the agreement, the data hub will become operational for e-commerce goods on 1 July 2028. A phased rollout will bring all movement of goods into its scope by 1 March 2034.

Benefits for businesses and authorities

Businesses

• submit import and export data once (instead of up to 27 national systems)
• reuse the same data for multiple consignments
• reduced administrative burden and costs

National authorities

• receive a complete overview of trade flows and supply chains
• access shared, real-time data across the EU
• ensure faster, more consistent and more effective risk responses

Simplifications for the most trusted traders

The updated legislation plans to introduce a new set of simplifications for the most trusted traders.

The new rules would create a new category of highly transparent businesses: 'trust and check traders'. Under this scheme, businesses that provide comprehensive information on the movement and compliance of goods, and meet stringent criteria, would benefit from streamlined customs obligations.

These most reliable traders would have a access to a number of simplifications with regards to their obligations, including being able to release their goods for circulation in the EU without any active customs intervention at all in some cases.

Other companies would continue to benefit from the existing simplifications available under the authorised economic operator (AEO) scheme.

Managing the influx of small parcels

Every day, the EU is flooded with small, low-value packages. According to the European Commission, 4.6 billion e-commerce parcels valued under €150 were imported into the EU in 2024, with 91% of those shipments coming from China.

The rapid growth of e-commerce has put pressure on customs authorities, increased the cost of monitoring incoming parcels, heightened fraud risks, and created unfair competition for EU businesses.

The 27 EU member states have agreed on a combination of short-term and long-term measures to address these problems.

The long-term solutions include removing the customs duty exemption threshold and introducing a new handling fee for low-value parcels.

As the removal of the customs duty threshold will only enter into force in 2028, the EU has also adopted a short-term measure introducing a fixed customs duty of €3 on items in small parcels valued at less than €150 entering the EU.

See also