The Council of the European Union has reached a key milestone in the reform of the EU’s customs framework, agreeing on a partial negotiating mandate that paves the way for sweeping changes aimed at modernizing and strengthening customs operations across EU.
This landmark reform responds to the growing complexity of global trade, especially the exponential rise in e-commerce—alongside increasing numbers of EU regulations that must be enforced at the border, and the need for a more coordinated response to geopolitical challenges and crises.
Key objectives of the EU Customs Reform
The revised customs framework is designed to:
- Enhance the EU’s ability to prevent the entry of unsafe or non-compliant goods.
- Improve the efficiency of customs duties collection.
- Enable more targeted and effective customs controls without overburdening authorities or traders.
Core elements of the EU Customs Reform
The Council’s agreement sets the stage for interinstitutional negotiations with the European Parliament on several core aspects:
1. Establishment of the EU Customs Authority from March 2028
A new decentralised agency—the EU Customs Authority—will be created to oversee EU-level risk management and crisis response. This agency will work closely with national customs authorities, helping to coordinate efforts and manage real-time data through a shared platform.
2. Launch of the EU Customs Data Hub by December 2037
A central innovation of the reform is the creation of the EU Customs Data Hub, a single online platform for submitting customs information. Businesses will only need to submit data once, even for multiple consignments, significantly reducing administrative burdens and improving traceability.
National customs authorities will benefit from real-time access to the same trade data, allowing for more consistent and rapid responses to customs risks across the EU.
3. “Trust and Check” Traders Scheme
A new category of traders—Trust and Check businesses—will be introduced. These are highly transparent operators that meet strict criteria and will benefit from simplified customs procedures. In some cases, their goods may even be released into circulation without active customs intervention.
4. Continuation of the AEO Scheme
To support small and medium-sized enterprises (SMEs), the Council’s text retains the existing Authorised Economic Operator (AEO) scheme, offering tailored simplifications and compliance support for these businesses.
5. Handling Fee for Small E-Commerce Shipments
The Council also proposes a new handling fee to be applied to small consignments entering the EU via distance selling platforms. This fee would be collected by customs authorities to help manage the growing volume of low-value parcels.
What will happen next?
With the Council’s partial mandate now adopted, negotiations with the European Parliament can begin. Discussions on unresolved elements, including the location of the EU Customs Authority, the final design of the simplified tariff system, and details of the handling fee—will continue at a later stage.
Background: what is the EU Customs Union?
Established in 1968, the EU Customs Union is one of the cornerstones of European integration. All EU Member States are part of the union, which ensures:
- Uniform tariffs for goods entering from outside the EU.
- No internal customs duties or border checks for goods moving within the EU.
- Free circulation of goods after customs clearance.
The Customs Union plays a critical role in protecting consumers, animals, and the environment, while facilitating legitimate trade and supporting law enforcement and anti-terrorism efforts.
This comprehensive reform represents a major step toward a unified, modern customs system that can meet the challenges of today’s interconnected, rapidly changing global economy.
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